Corporate Governance - Basics

As a practice corporate governance assumes importance for widely held or publicly held (listed) companies largely from the perspective that the independent investors (including retail investors) interests are protected on three dimensions.

1. Operations are carried on diligently
   
2. Financial results are reliable
3. Business is compliant with the applicable laws
   

The deployment of good corporate governance practice vary from

• Separating the Role of the CEO and Chairman
• Bringing in Independent Directors on the board
• Independent Audit committee
• Remuneration committee to evaluate the remuneration of the Key Management
  

A these measures are designed to allay any potential risks on the integrity and fidelity of the management of the business.