Report on corporate governance with details of pakistans efforts towards developing its Corporate Governance Profile, aswell as brief discussion of cases related to corporate governance
ACCA
Corporate Governance Regime
Business Ethic
etika bisnis pertemuan 9Full description
corporate governanceFull description
Taxation law in india is a wide example og governance system in india.Full description
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study notes corporate governance
Corporate Governance of BMW GroupFull description
Prinsip OECD
This compact and concise text, now in its third edition, continues to give a clear analysis of the principles and practices of corporate governance—the corporate governance practices prevalent in I...
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A Brief History of Corporate Governance Dr Safdar A Butt
CG as field of study
CG has existed for as long as companies have existed. But as a field of study it is less than 70 years old. Last 40 years: A lot of activity in this field. Codes, reports and laws have come out. Number of research papers and theories have evolved.
Corporate Wrongs -1
Loss of ethics Earnings became every thing. Ineffective boards, smart executives. Huge remunerations for executive directors. Greed leading to disparity among senior managers and other employees.
Corporate Wrongs - 2
Short term goals and considerations. Collusion between directors and auditors. Pressure from institutional investors Loss of interest by small investors in big companies. In Pakistan, family control of companies.
Some Scandals in USA -1
WorldCom
Adelphia Communications Communications
Illegal loan to founder
Enron
Overstatement of profits by $3.8 billion
Gross misuse of power by directors
Waste Management Management Inc.
Overstatement of earnings by $17 billion over 6 yrs
Some Scandals in USA - 2
Tyco
Peregrine Systems
Overstatement of earnings by $100 million.
Imclone Systems
Evasion of sales tax on personal purchases.
Insider trading by CEO
Rite Aid
Accounting and securities fraud. fraud.
Some Scandals in UK
BCCI
Barings Bank
Ineffective internal controls, $1.4 billion loss
Mirror Group
Improper accounting and policies
Gross misappropriation of funds including pensions
Polly Peck
Diversion of funds to personal use.
Some Scandals in Pakistan
Crescent Bank Islamic Investment Bank Bankers Equity Pakistan Steel Mills Indus Bank
Evolution of CG Cadbury Report 1992, UK Greenbury Report 1995, UK Hampel Report 1998, UK Combined Code 1998, UK Turnbull Report Report 1999, UK OECD Principles of CG, 1999
OECD Principles Rights of shareholders must be protected. treated equitably. All shareholders to be treated allowed to play due role. All stakeholders to be allowed Timely and accurate disclosures. disclosures. Accountability and responsibility responsibility of directors.
More Reports
Basle Committee Guidelines 1999 (banks) Myners Report 2001, UK Cromme Report 2002, Germany Higgs Review 2003, UK (INEDs) Smith Report 2003, UK (Audit committees) Revised Combined Code, 2003, UK Kings Reports 1994, 2000, 2009, South Africa Sarbanes Oxley Act 2002, USA
CG Models Anglo American Model (AAM) Japanese Model German Model
Anglo American American Model Model Free economy based: Market sets the price of capital and expectations of returns. Company runs for shareholders’ benefits, i.e. to maximize their wealth. structure: SH/Board/Management SH/Board/Management Triangular structure: Most companies run by people owning less than a quarter of the company. Major agency and CG issues.
Japanese CG Model Keiretsu system of ownership: Large groups own the companies. Inter-locking directorates and shareholding. All policies made by the group. Group funds, controls and helps where needed. Management kept alert all the term. Agency issues still persist.
German CG Model Group ownership is common. Strong hold of investors over the boards. Two tier boards by law. Representatio Representation n of workers and shareholders in Supervisory Board. Size of Supervisory Board cannot be changed by the company; regulated by law.
CG Related International Bodies World Bank and IMF Global CG Forum International CG Network Commission on public trust and private enterprise.
