Corporate Governance, Concepts and Practices: A Survey

Abstract

The purpose of this study is to analyse the perceptual responses of professionals (company secretaries) with special reference to the study of corporate governance. Parameters included in the study pertain to the concept & practices of corporate governance and problems encountered in the course of implementing corporate governance norms. For the purpose of the study, the concept of corporate governance includes meaning, objectives, mechanisms and substance of corporate governance. Moreover, the study also elicits the responses of professionals with regard to board structure and practices to explain the corporate governance practices. Moreover, measures to enhance the effectiveness of stock exchanges to implement the corporate governance norms and the relationship between stock market reforms & corporate governance have also been included in the study. The study is based on the responses of 46 company secretaries. Data were collected through structured questionnaire. The results of the study show that there is overall agreeability among respondents regarding the role of stock exchanges to bring about an improvement in governance practices with special reference to the board structure & practices. It has also been observed that the appointments of directors should not be left solely at the discretion of the company rather; regulatory authorities should get involved in the appointment of directors. The most important problem observed during the survey is of the objectives, that the companies are formed to sub-serve the interests of the families/promoters rather than promoting the interests of the common investors.