CORPORATE GOVERNANCE – LAW and POLICY PERSPECTIVES

Abstract

Corporate Governance is a system by which companies are directed and controlled. Corporate Governance mainly aims at total transparency integrity and accountability of Company affairs. Corporate Governance aims to achieve best interest to all stake holders. Stake holders are the term coined with the development of corporate governance. Previously everything used to look from the view point of shareholders. Stake holders are persons who are directly or indirectly connected to company. The stakeholders may be internal or external. Internal stake holders may be promoters, members, workmen, executive’s etc. external stake holders may be customer, Lenders, Dealers, vendors, bankers, community, government etc. As it is well known that, even through a company is a person in the eye of law, its personality has certain limitations as to perform certain functions. It is only a juristic person existing only in the eye of law and not capable of taking certain decisions, which are hallmark of natural persons. Decision making and running the affairs of the company is one of such thing that a company cannot do on its own as a person.