scholarly journals THE ROLE OF CORPORATE GOVERNANCE IN INDIAN BANKING COMPANIES

2021 ◽  
pp. 14-23
Author(s):  
Dr.K.Thirumamagal
Keyword(s):  
Corporate Governance ◽  
Private Sector ◽  
Financial Institutions ◽  
Business Environment ◽  
New Economic Policy ◽  
Unethical Practices ◽  
The Government ◽  
New Generation ◽  
First Time

The process of liberalization and deregulation was unleashed by the new economic policy of the Government of India during 1991. Reforms in financial sector opened the doors to the private sector Banks in the country and it paved way for the new generation banks. Customers welcomed these financial institutions and they were awaiting for this opportunity to make themselves comfortable with the services provided by private sector banks after experiencing poor services from Nationalized Banks. The unethical practices and increased corruption kept the management of different organization to fleece their customers which in turn resulted in the closing down of some big companies. The need of Corporate Governance was felt during the securities scam of Harshad Mehta’s in April 1992 involving a large number of banks and it resulted a drastic change for the first time in stock market that shook the confidence of investors. The practices of the Corporate Governance has to be constantly evaluated because of the uncertain and complex business environment in India. KEY WORDS: Banking Companies, Fraud, Scams, Corporate Governance

Corporate Governance: Principles and Objectives

1998 ◽  
Vol 2 (2) ◽  
pp. 18-22
Author(s):  
N. Vittal
Keyword(s):  
Corporate Governance ◽  
Board Of Directors ◽  
Financial Institutions ◽  
Code Of Conduct ◽  
Ethical Values ◽  
Good Corporate Governance ◽  
The Board Of Directors ◽  
Fundamental Value ◽  
The Government

Corporate Governance provides the fundamental value framework for the culture of an organisation which ensures efficient functioning of enterprises on sound ethical values and principles. Corporate governance has become a necessity, especially since 1991, when India made a U-turn in its economic policy and the revised policy of the government was aimed at attracting funds from foreign financial institutions. The primary resonsibiity of good corporate governance is that of the Board of Directors. For better corporate governance the boards should perform the role of monitoring the functioning of an organisation, without at the same time reducing the effectiveness of the management by interfering with their day-to-day matters. One of the impediments in the way of good corporate governance is corruption. The three factors within any system which generate corruption are: scarcity, lack of transparency and delay. If these three problems are tackled effectively, corruption can be checked to a great extent. As far as public sector undertakings are concerned, the “Code of Conduct and Ethics” should facilitate the redesigning of the PSEs.

Directors' Role and Responsibilities under the Light of New Amendment Act of Company Law

2017 ◽  
pp. 160-177
Author(s):  
Saroja V. B. N. H. Achanta ◽  
Radhika Raavi
Keyword(s):  
Corporate Governance ◽  
Company Law ◽  
Independent Directors ◽  
Independent Director ◽  
The Government ◽  
First Time

The chapter focuses on the key changes the roles and duties of Directors and Independent Directors under the light of New Amendment Act, 2013 of the Companies Act, 1956. This chapter analyzes the role of Directors / Independent Director by comparing the two major Companies Act 1956 and Companies Act 2013. Company Act 2013, is an initiation for better corporate governance, increasing levels of transparency and enhance the corporate and auditor's accountability. New Amendment Act of 2013 is a good legislative attempt by the Government. The following points are focused for the first time in this New Act, 2013. Duties of Directors are defined and Role of Independent Directors is defined. The Board has to take the precautions to implement proper systems and to ensure that all the compliance with the provisions of all the applicable laws which were adequate and operating effectively. As per the provisions of the New Act, 2013 the maximum number of Directors can be appointed are 15 with a special resolution, can be increased more than 15. Made provision for women Director.

The Failure of Corporate Governance at Infrastructure Leasing and Financial Services Limited: Lessons Learnt

2021 ◽  
Vol 10 (1) ◽  
pp. 63-76
Author(s):  
Gagan Kukreja ◽  
Sanjay Gupta ◽  
Meena Bhatia
Keyword(s):  
Corporate Governance ◽  
Stock Market ◽  
Financial Services ◽  
Agency Problem ◽  
Vital Role ◽  
Senior Management ◽  
Unethical Practices ◽  
The Government

This case study investigates multiple issues related to corporate governance, regulations, auditing and financial reporting of Infrastructure Leasing and Financial Services Limited (IL&FS). Combinations of these issues resulted in default in payment obligations by IL&FS in August 2018 originated from the agency problem. It posed a substantial systematic risk to the whole financial system of India. This case study highlights the severe drawback of concentration of decision-making and unprofessional work ethics at the senior management level. Further, the case study also provides the opportunity to discuss the inappropriate regulations and governance practices which cause a severe problem in long-standing and prominent organizations like IL&FS. Research Questions: (a) Discuss the vital role of corporate governance in major corporations and the reasons behind governance failures. (b) How did asset–liability mismatch create liquidity problems in a company which deals with long-term projects? (c) How does lack of a proper and unified regulatory framework for Non-Banking Financial Corporation (NBFC) harm investors’ interest? Link to Theory: This case study provides an opportunity to learn the role of corporate governance in NBFC. This case demonstrates the problems arisen because of agency problem and conflict of interest among real-world stakeholders. The case study also highlights the importance of assets–liabilities management in a strategically important organization like IL&FS. Phenomenon Studied: This case study attempts to understand the potential problems that occurred in IL&FS from the failure of good governance, lack of unified regulations for NBFCs and non-adherence of professional responsibilities by the external auditors. Case Context: The case study explores the vital role of the infrastructure development and financing companies in developing economies like India and how it may affect other vital entities of the financial system. Further, it demonstrates how unethical practices at senior management and lack of unified regulations can harm the organization. Findings: The research study found senior management’s potential involvement in unethical practices while managing the company. The financial statements did not reflect the true and fair picture of the entity, which misled investors and other stakeholders. It created chaos in the stock market, resulting in a loss to shareholders. The government set up a new board to restore the confidence of the stock market. Further, the government started to address the problems that arose. Discussions: The case of IL&FS by default, at first glance, looks like a case of asset–liability mismatch due to the lack of supervisory roles of the board and senior management’s massive regulatory failure. It is shocking how under the nose of regulators like Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI) and Ministry of Corporate Affairs (MCA) a default of this scale could take place. How could IL&FS group grow unchecked into a massive 348 entity. It appeared that regulators, marquee shareholders (banks and institutions), and the board of directors failed in their fiduciary obligation to regulate and supervise IL&FS.

Corporate Governance Failure: A Case Study of Satyam

2010 ◽  
Vol 3 (2) ◽  
pp. 136-175
Author(s):  
Jai Prakash Sharma
Keyword(s):  
Corporate Governance ◽  
Audit Committee ◽  
Corporate Policies ◽  
Unethical Practices ◽  
Corporate Governance Mechanisms ◽  
Unethical Activity ◽  
The Government ◽  
Similar Kind

Corporate Governance has become prominent over the last two decades as many countries witnessed corporates succumbing to questionable corporate policies and unethical practices, setting in motion reforms through codes and standards on corporate governance. India too had had its share of corporate scams. The recent fraud in Satyam has shattered the dreams of various investors, shocked the government and regulators alike and led to questioning the accounting practices of statutory auditors and corporate governance norms. Unethical business conduct, cooking of books of accounts, questionable role of audit committee, flawed ownership structure and other major governance flaws were noticed in the collapse of Satyam. As in USA, UK and other countries, India too needs similar kind of corporate governance reforms. Even though corporate governance mechanisms cannot prevent unethical activity by top management completely, but they can at least act as a means of detecting such activity before it is too late.

Boardroom in the Twenty-First Century: Issues and Challenges

1998 ◽  
Vol 2 (2) ◽  
pp. 1-5
Author(s):  
R.V. Shahi
Keyword(s):  
Public Sector ◽  
Private Sector ◽  
Board Of Directors ◽  
Task Force ◽  
First Century ◽  
New Economic Policy ◽  
License System ◽  
The Government ◽  
Set Up

The new economic policy initiated by the government in 1991 which led to liberalisation, end of license system, private sector involvement in economic development and disinvestment of public sector has given rise to increased expectations for greater accountability and effective functioning of organisations. The degree of expectation varies, depending on the nature of organisation, whether public or private sector, but nevertheless the requirement is common to all. It is in this context that corporate governance and the role of Board of Directors in the governance of organisations is receiving increased attention. The National Task Force set up by the Confedration of Indian Industry (CII) evolved in 1998, the “Desirable Corporate Governnance Code” which lays down the basic guidelines on issues concerning board of directors, desirable disclosures, capital market issues, creditors rights and financial institutions and nominee directors. In the case of public sector undertakings a novel scheme called “Navaratna” was introduced whereby the boards of nine central public sector companies were restructured with lesser number of officials from government and more professionals from outside. Reduced ownership of the government through disinvestment by more than 50 per cent seems to be the only answer to provide the PSUs with the requisite autonomy.

RURAL TOURISM IN INDIA CHALLENGES AND OPPORTUNITIES

2018 ◽  
Vol 6 (26) ◽  
Author(s):  
Pankaj Sharma ◽  
Ravi Parkash
Keyword(s):  
Private Sector ◽  
Rural Areas ◽  
Economic Condition ◽  
Rural Tourism ◽  
Rural Location ◽  
Different Types ◽  
Challenges And Opportunities ◽  
Political Background ◽  
The Government

The paper analyze the role of rural tourism for the development of rural areas, The study analyzed how the different types of tourist product diversifications influence the development possibilities of studied rural areas in India. The government should sponsor private Sector to promote tourism in rural areas. For upgrading the rural tourism government requires to understand the rural location, demography, socio-culture, financial and political background of that area. How we can involve the rural citizens to improve their socio-economic condition. The objective of this paper is to present an update on rural tourism expansion and development in India. Rural tourism is rising in terms of number of visitors and the government of India should focus on it as an engine of growth

Prospects for architects in the Government Sector

2021 ◽  
Vol 9 (4) ◽  
pp. 27-39
Author(s):  
Disha Garg ◽  
Kartik Sharma ◽  
Parul Nayar ◽  
Shubhi Goyal ◽  
Shruti S Nagdeve
Keyword(s):  
Graduate Students ◽  
Private Sector ◽  
Professional Life ◽  
Thought Process ◽  
The Public ◽  
Government Organizations ◽  
Private Practices ◽  
Government Sector ◽  
The Government

Purpose: With the conception of one’s professional life, it is essential to understand all the possibilities and opportunities that lie before them. In the case of architecture, there exists a bias towards the private sector where newly graduate students aspire to work in private practices and possibly even envision a practice of their own at a certain point in life. While there is nothing wrong with envisioning a future in the private sector, it is also essential to be aware about the public sector and understand the opportunities it provides to be able to make an informed decision. There is a preconceived notion about the monotonous nature of government jobs and a lack of awareness about students about the opportunities in this sector. Hence, it becomes crucial to understand the numerous opportunities this sector has to offer and thus, explore the potential of architects in government organizations. Methodology: The research for this paper has been done by referring to existing literature and interviews with concerned people. With an understanding of how and why is the government sector an essential  area of research for budding architects and planners. The research was done through interviews and possible case studies was done based on review of existing literature. Main Findings: The government is one sector with tremendous possibilities in the realm of architecture but is often plagued with stereotypes and preconceptions which have emerged over the years. It is imagined to be “lazy”, “uninnovative” and “non-productive” but this sector has evolved over the recent years and is now shaping to be one of the more lucrative sectors for practice. The number of perks, benefits and a clear comparative advantage of a higher salary, added with the direct contribution towards serving the nation, the government sector clearly has an unrealised potential for architectural professionals. Implications: With younger architetcs having preconceived notions about role of architetcs in a government sector limited to unexciting set of designs without creativity, this article may help bring a fresh thought process to choose professional sector wisely.

scholarly journals Pengaruh Good Corporate Governance dan Budaya Tri Hita Karana Pada Kinerja Bank Perkreditan Rakyat

2017 ◽  
pp. 17
Author(s):  
I Gusti Ayu Made Asri Dwija Putri ◽  
I.G.K.A Ulupui ◽  
Ni Gusti Putu Wirawati
Keyword(s):  
Corporate Governance ◽  
Regression Analysis ◽  
Sampling Method ◽  
Research Result ◽  
Economic Problem ◽  
Good Corporate Governance ◽  
Result Show ◽  
The Government ◽  
Cultural Effect

The purpose of this study, namely to obtain empirical evidence that the implementation of corporate governance affect the performance of “Bank Perkreditan Rakyat” ( rural banks), and the role of local culture “Tri Hita Karana “to the BPR’s performance. The population is all BPR located in Badung and Denpasar. The samples using purposive sampling method. The data in this study were collected using a questionnaire are distributed directly to the object of research. “BPR” number into the sample in this study was 65 Banks. Data analyzed by model Multiple Regression Analysis. The research result show that the principles of corporate governance and the local cultural effect on the performance of BPR in Badung and Denpasar. “Bank Perkreditan Rakyat”. The implication of the study is important for the government to solve the economic problem using Corporate Governance and Tri Hita Karana concept.  

scholarly journals Training a New Generation for Careers in Wildlife Management in Ethiopia

2016 ◽  
Vol 4 (2) ◽  
Author(s):  
Murali Pai ◽  
Takele K. Serekebirhan
Keyword(s):  
Private Sector ◽  
Community Participation ◽  
Wildlife Management ◽  
Human Dimensions ◽  
Master's Program ◽  
Human Dimensions Of Wildlife ◽  
Start Up ◽  
Survey Results ◽  
The Government ◽  
New Generation

This article describes the start-up of a new interdisciplinary Master’s program in Wildlife Management at Arba Minch University (AMU), Ethiopia. The need, salient features, review of curriculum, and stakeholders of the program are examined. The human dimensions of wildlife management have been given its due with an aim to get biodiversity stewardship on a firm footing in the country. The program, aims to link young graduates to regional stakeholders on conservation perspectives through courses such as Human Dimensions of Wildlife Management, Wildlife Economics and Entrepreneurship and Biodiversity Conservation. The scope of wildlife tourism in Ethiopia has been highlighted in the program. The survey results of stakeholder representatives found good prospects for the sustainability of the MSc program in wildlife management provided stakeholder coordination and community participation in the program are diligently ensured. In conclusion, the Master’s program in wildlife management is interdisciplinary, job-oriented and intended to prepare a new generation for placements with the government, NGOs and private sector in order to contribute to wildlife management and biodiversity stewardship in Ethiopia

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