Fundamental Principles of Corporate Governance
1) Transparency
It means accurate, adequate & timely disclosure of relevant information to the stakeholders. Without transparency, it is impossible to make any progress towards good governance. Business heads should realize that transparency also creates immense shareholder value.
2) Accountability
Corporate Governance has to be a top down approach. Chairman, Board of Directors & Chief Executives must fulfill their responsibilities to make corporate governance a reality in Indian industry. Accountability also favours the objective of creating shareholders value
3) Merit Based Management
A strong Board of Directors is necessary to lead and support merit based management. The board has to be an independent, strong and non- partisan body where the sole motive should be decision-making through business prudence.
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