Objectives of Corporate Governance: - Corporate Governance is aimed at creating an organization which maximizes the wealth of shareholders. It envisages an organization in which emphasis is laid on fulfilling the social responsibilities towards the stakeholders in addition to the earning of profits.

policy makers have learned that systematic failure of investor protection mechanisms, combined with weak capital market regulation in systems that rely heavily on “crony capitalism,” can lead to failures of confidence that spread from individual firms to entire nations. Insufficient financial disclosure and capital market regulation, lack of minority shareholder protections, and failure of board and controlling shareholder accountability all supported lending and investing practices based on relationships rather than on a prudent analysis of risk and reward. The not-surprising result in the “miracle” economies of East Asia was over-investment in non-productive and often speculative activities by corporations.

Set of processes, customs, policies, laws, and institutions affecting the way a corporation (or company) is directed, administered or controlled. Kautilya’s(Chanakya) Arthashastra is the oldest book (around 300 B.C) onManagement available to the world This masterpiece covered a wide range of topics and also recommended that the king shall not consult with any advisor who had a vested interest in the outcome of a particular project.