Corporate Governance ( Sarbanes Oxley )

2377 Words10 Pages
Introduction; Corporate Governance provides the guidelines as to how the company can be directed and controlled such that it can fulfil its goals and objectives in a manner that adds to the value of the company and is also beneficial for all stakeholders in the long term. Stakeholders will include everyone ranging from the board of directors, management, shareholders to customers, employees; in society the management of the company hence assumes the role of a trustee for all the others (Tricker, 2012). Evolution of corporate governance: The idea of corporate governance is not new to us, it has been with us since the launch of major chartered companies such as East India Company, The Levant Company etc in the 16th and 17th century. But…show more content…
Theories of corporate governance: There are various types of theories available in corporate governance. Such as, agency theory which is shareholders engages another person (director) to act on behalf of them. Stewardship theory is contrary to agency theory where shareholders have more power than director towards the organisation (Tricker, 2012). Also has Resource dependency theory, stakeholder theory and so on. Models of Corporate governance: Corporate governance is now an international topic due to the globalisation of businesses (Reed, 2002). It also has several types of models. Every country adopts a unique set of corporate governance procedures that are based on such factors as the country’s legal and the financial systems, culture, corporate ownership structures and economic circumstances. However, Judge (2010) challenges scholars and practitioners to develop globally applicable models of corporate governance. Models of Corporate governance; The American rule-based model, The UK/Commonwealth principles- based model, Japanese business network model, The Asian
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