...Industry Module: International Corporate Governance Assignment Title: Critically discus the extent to which you consider the initiatives aimed at corporate governance reform in the UK represent an improvement to the system of corporate governance Date and Time of Submission: 13/11/2014 11:00AM Please ensure that you complete and attach this Submission Form to the front of all work that is submitted online. Before submission, please ensure that your name does not appear anywhere on your work, only your Student ID number. By submitting your work online you are confirming that your work is your own and that you understand and have read the University’s rules regarding plagiarism and the consequences that will arise should you submit plagiarised work. Corporate governance pertains to the implementation of a set of established policies in which influence the way an organisation is managed and the style in which it operates. For policies to be efficiently and effectively implemented the execution of corporate governance is not only vital, but also essential in satisfying an organisations customers, employees, management and the interrelations amongst stakeholders involved (Bhattacharya, 2000). The late 1980s and early 1990s witnessed major upheaval in regards to continuous instances of corporate failure of several prominent UK organisations including Polly Peck, BCCI and Maxwell Communications. These corporate collapses and financial scandals were the driving force...
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...CHAPTER ONE The Organization 1.0 Introduction United Commercial Bank Limited (UCBL) is a Bangladesh based private commercial bank that provides banking services. The services include corporate and retail banking, loans, credit cards, online banking and money transfer services. The bank operates in Bangladesh having its headquarter in Gulshan, Dhaka. UCBL has its firm commitment towards the society for the economic development of the country. Their position is 6th among the 52 banks which include 10 specialized banks, 9 foreign banks and 30 private banks. So the bank has already become a significant part of our economy by serving its clients through their personalized service, innovative practices, dynamic approach and efficient Management. At present, UCBL is aiming to play a leading role in the economic activities of the country, planning to establish more sustainable business relations with large corporate groups and overcome all its deficiencies and give their competitors an edge. 1.1 History United Commercial Bank Limited (UCBL) is considered as one of the first generation bank of Bangladesh. It was incorporated on 26th June 1983 as a public company with limited liability under the Companies Act 1993. It obtained permission to start business from 26 June 1983 and started banking operations on 29th June 1983 with an authorized capital of Tk. 100 million divided into 1 million ordinary shares of Tk. 100 each. 1.2 Vision of the UCBL To hold the position...
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...THE UNIVERSITY OF BURDWAN DIRECTORATE OF DISTANCE EDUCATION TERM PAPER ON CORPORATE GOVERNANCE PRACTISE BY DIFFERENT COMPANIES OF INDIA AND OTHER COUNTRIES. COURSE: MASTERS IN BUSINESS ADMINISTRATION PAPER: BUSINESS LAWS AND CORPORATE GOVERNANCE. PAPER CODE: MBD 107. SEMESTAR: 1ST SUBMITTED BY SOUMYA KANTI BOSE ENROLLMENT NO: DDE/MBA/JUL2013/14. REGISTRATION NO: APPLIED FOR. SESSION: JULY 2013 - JUNE 2015. INDEX PARTICULARS | PAGE NO | Introduction | 03 | Objectives of Study | 03 | World Scenario in Corporate Governance | 03 | Indian Scenario in Corporate Governance | 03-04 | Corporate Governance Practices By State Bank of India, India | 04-05 | Corporate Governance Practices By Axis Bank Ltd, India | 05-13 | Corporate Governance Practices by National Australia Bank, NAB | 13-18 | Corporate Governance By HSBC, London | 19-23 | Conclusion | 23 | Reference | 23 | Introduction: The issue of corporate governance has come up mainly in the wake up economic reforms characterized by liberalization and deregulation. Corporate governance has at its backbone a set of transparent relationships between an institution’s management its board, shareholders and other stakeholders. Corporate governance has come up mainly in the wake up of economic reforms characterized by liberalization and deregulation. According to OECD, the corporate governance structure specifies the distribution of rights and responsibilities among different participants in the corporation...
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...Autumn 2010 Different ApproA in corporAte Gov Relevant to PaPeR P1 Learning Centre PAGE 15 ches ernAnce Study tiPS: Despite some new additions to the Paper P1 Study Guide in June 2011, a substantial part of the Paper P1 syllabus continues to concern matters of corporate governance. Section A6 of the Paper P1 Study Guide requires to have knowledge of the different approaches to corporate governance, inter alia, the development of corporate governance codes in principles-based jurisdictions (A6(d)), the Sarbanes-Oxley Act (2002) as an example of a rules-based approach (A6(e)) and the objectives, content and limitations of corporate governance codes intended to apply to multiple national jurisdictions, namely the OECD principles of corporate governance (A6(f)). specification in something such as a code of best practice ... One thing is clear, though. Whatever the model, the public must know about it and about how it is operating in practice. Disclosure should be a central feature of any corporate governance regime. Shareholders, potential shareholders and the wider public are entitled to real, meaningful detail about the way the directors say they are carrying out their stewardship role. The annual report and, in these times, the company’s website are important forums for disclosure. Directors who take the fundamental notions of openness, integrity and accountability seriously …… will be well on the way to good corporate governance.” to US and non-US companies with a...
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...Corporate Governance Alfa-Bank Alfa-Bank was founded in 1990. It is one of Russia’s largest privately owned banks Alfa-Bank is present in every key sector of the financial services industry, including corporate banking, retail banking, investment banking, trade finance, insurance and asset management. The Bank is considered one of the most reliable and dynamic financial institutions in Russia. It combines a thorough knowledge of the specific characteristics of the Russian market with the very highest of Western standards. Alfa Banking Group is one of Russia’s largest privately owned banking groups in terms of equity, assets, branches, retail deposits and funds under management. Founded in 1990, Alfa Banking Group offers a wide range of products and operates in all sectors of the financial market, including corporate and retail lending, deposits, payment and account services, foreign exchange operations, cash handling services, custody services, investment banking and other ancillary services to corporate and retail customers. Alfa Bank has simplified its ownership structure in order to participate in the deposit insurance system. AB Holding has consolidated nearly 100% of the bank's shares to replace the multiple companies that used to own the bank. Alfa Banking Group is owned by 6 beneficial shareholders. The role of the Board of Directors of Alfa-Bank is to define the strategic guidelines and policies by establishing the corporate strategy, review the business plans and...
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...Introduction Corporate governance refers to the method by which a corporation is directed, administered or controlled. It includes the laws and customs affecting that direction, as well as the goals for which it is governed. Corporate governance mechanisms and controls are designed to reduce the inefficiencies that arise from moral hazard and adverse selection. Corporate governance is also viewed as a process of monitoring performance by applying appropriate counter-measures and dealing with concepts such as transparency, integrity and accountability. Corporate governance requires corporations to exercise immense accountability to shareholders and the public, and also monitors the management of organisations in running their businesses. Corporate governance is normally divided into two categories, that is, self and statutory. Self-regulation involves aspects of corporate governance that are difficult to legislate. The issues in this category involve the human element, ie the independence of the board of directors, the relationship with the management and appraisal of the director’s performance. Statutory regulation, on the other hand, is the framework of corporate governance that can be explained in legal terms. The legislative and regulatory rules include: 1. Duties, obligations, rights and liabilities of directors, controlling shareholders and company officers. 2. Disclosure and transparency. Today, good corporate governance is considered vital as it promotes morality...
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...GLOBAL CORPORATE STRATEGY Name Course Instructor School Date Abstract. The report seeks to answer questions relating to Lloyd banking group, an internationally accredited bank that offers several services. Several issues are addressed in the report. The first issue being addressed is the merit and demerits of globalization in the global financial industry. Additionally, the threats and opportunities facing Lloyd Bank are looked at. The second issue being addressed focuses on the role of strategic alliances of mergers and acquisitions in the implementation of the e-banking system. Lastly, the role of corporate governance and corporate social responsibility is addressed. A personnel reflection and a conclusion sum up the paper. Table of Contents Abstract. 2 QUESTION 1: Firms’ Competitiveness in the Global Financial Services Industry 3 Merits of globalization 3 Demerits of Globalisation 4 Opportunities 5 Threats 6 Question two: E-Banking – The Role of Alliances, Mergers, and Acquisitions 7 Question three: Corporate Governance, CSR, and Competitiveness Leadership 12 Question four: Personal Reflections on Learning and Overall Report Presentation 15 Conclusion 16 Reference 17 QUESTION 1: Firms’ Competitiveness in the Global Financial Services Industry Merits of globalization Globalization of financial services has resulted in more banks increasing their consumer or customer base since they can exploit different areas across the world. The perfect example in this case...
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...VANITA YADAV C.V. BAXI CORPORATE GOVERNANCE FAILURE AT SATYAM “Why do you want to quit Satyam,”1 the panel member asked the 30-year-old employee being interviewed. Satyam Computer Services Ltd (“Satyam”) was India’s fourth-largest computer services company; however, many employees had left and applied for new jobs after news of a US$1.4 billion corporate fraud at Satyam became public in December 2008. 2 Satyam’s governance failure had severely shaken its stakeholders and the global business community, and the business press worldwide referred to Satyam as “India’s Enron”.3 Satyam was listed on the New York Stock Exchange (“NYSE”) in 2001 and on Euronext Amsterdam in 2008. 4 It boasted a large number of clients, including many Fortune 500 companies.5 The founder of Satyam Computer Services, B. Ramalinga Raju (“Raju”), was a highly regarded entrepreneur and an eminent fixture at prestigious corporate events in India.6 In 2007, he was honoured with the Ernst & Young Entrepreneur of the Year award, yet a mere two years later, on 7 January 2009, Raju made the calamitous confession that he had falsified accounts on a grand scale over a long period of time. His shocking announcement sparked a big debate over whether India possessed adequate guidelines for corporate governance. 7 How did Raju commit a fraud of such magnitude? How could a successful company, twice awarded the Golden Peacock award for corporate governance excellence collapse in such a manner? 8 Where did the internal...
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...Introduction Corporate governance could be defined as the system of regulating and overseeing corporate conduct and of balancing the interests of all internal stakeholders and other parties which are external stakeholders, governments and local communities who can be affected by the corporation's conduct, in order to ensure responsible behavior by corporation and to achieve the maximum level of efficiency and profitability for a corporation. (Jean, Anil and Mirko 2011, pp.10). Therefore, the corporate governance framework consists of explicit and implicit contracts between the company and the stakeholders for distribution of responsibilities, rights, and rewards; the procedures for reconciling the sometimes conflicting interests of stakeholders in accordance with their duties, privileges, and roles; and procedures for proper supervision, control, and information-flows to serve as a system of checks-and-balances. (businessdictionary.com 2012) Starbucks Company and British Petroleum Plc are chosen to explain and discuss on good corporate governance; meanwhile Enron is chosen to explain and discuss on bad corporate governance. Since Starbucks and Enron are incorporated in the United States of America (USA), therefore these two companies will be used to compare how they governance their company under principle of corporate governance of America. Corporate Governance in United States (US) In United States, after have various corporate scandals, corporate governance has rising...
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...Setting the pace and getting started in NGO Corporate governance. An Assessment of corporate governance for Non Governmental Organizations in Zimbabwe By Lasford Flackson lasyflackson@gmail.com .Tel:+263773931949 Table of contents Introduction Chapter one An overview of corporate governance The evolution of governance Development of corporate governance Approaches to corporate governance Chapter two Adaptation and adoption of corporate governance Ngo sector in Zimbabwe Requirements for NGO operation in Zimbabwe Guiding principles for good corporate governance Chapter three Conclusion and Recommendations 2 Introduction The collective problem of business today is increasingly attributed to the failure of corporate governance. This means that far too many boards are failing to execute their duties responsibly, both collectively and individually. Despite increasing awareness, there is a general lack of understanding of the principles of effective corporate governance in most quarters. The study sought to assess corporate governance issues and challenges for non governmental organisations. The study takes a point of departure in explaining how non governmental organisations can adapt and adopt effective corporate governance practices viz- a- viz, how NGOs can adapt and adopt to corporate governance. Several non governmental organisations do not observe good corporate governance and this to the collapse of many. There are no set rules ...
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...EXECUTIVE SUMMARY This paper investigates about the Enron Corporation and Arthur Anderson. This assignment is to identify the background of Enron and Arthur Anderson and Enron fail. Other than that, identify the business risks that faced by Enron. Moreover, determine the responsibilities of board of directors and steps to improve corporate governance. Besides that, differentiated between rules-based accounting and principle-based accounting and the uses. In addition, there are discussion about auditor should allowed to provide non-audit services. There are also critical discussion on the reason audit partners struggle with making tough accounting decisions and a good recommendation of changes to be made. 1.0 Background of Enron Corporation and Arthur Anderson and fall Of Enron. 1.1 Background of Enron Corporation Enron was established in the middle of a recession in 1985, when Kenneth Lay CEO of Houston Natural Gas Company (HNG), persuaded a joining among Inter North Incorporate (Peterson). There was a young consultant named Jeffrey Skilling who had a background in banking organization (Peterson). He planned an innovative solution for Enron profit in the natural gas business (Sridharan, Dickes, & Caines). For instance, Enron buy natural gas from suppliers and sell to customers with the higher price (Sridharan, Dickes, & Caines). It is because the demand of natural gas increased (Peterson). Kenneth Lay was very impressed with Skilling’s new solution in 1990 and...
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...Efficacy of Corporate Governance Contents 1. Definition of Corporate Governance 2. History of Corporate Governance – Pre and Post Liberalization 3. Objectives of Corporate Governance 4. Need of Corporate Governance 5. Framework of Corporate Governance 6. Principles of Corporate Governance in India and in the World 7. Merits and Demerits of Corporate Governance 8. Impact of Violation of Corporate Governance Laws 9. Case Study – a) Satyam b) Pfizer c) 3rd Company 10. Conclusion 11. Bibliography Definition "Corporate Governance is concerned with holding the balance between economic and social goals and between individual and communal goals. The corporate governance framework is there to encourage the efficient use of resources and equally to require accountability for the stewardship of those resources. The aim is to align as nearly as possible the interests of individuals, corporations and society"-(Sir Adrian Cadbury in 'Global Corporate Governance Forum', World Bank, 2000) Corporate governance is the relationship between corporate managers, directors and the providers of equity, people and institutions who save and invest their capital to earn a return. It ensures that the board of directors is accountable for the pursuit of corporate objectives and that the corporation itself conforms to the law and regulations. - International Chamber of Commerce Corporate Governance deals with laws, procedures, practices and implicit rules that...
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...CORPORATE GOVERNANCE IN NEPALESE FINANCIAL SECTOR: DOES POLICY MATTER? Submitted To Research Committee Research and Consulting Service Department Nepal Administrative Staff College Submitted By Basanta Raj Sigdel Santosh Koirala June, 2015 Copyright: Nepal Administrative Staff College Recommended Citation Sigdel, B.R. & Koirala, S. (2015). Corporate governance in Nepalese financial sector: Does policy matter? Lalitpur, Nepal: Nepal Administrative Staff College. Declaimer: This study is funded by Nepal Administrative Staff College. The opinion expressed in this research report do not represent official position of Nepal Administrative Staff College and are those of the researchers. ACKNOWLEDGEMENT This research paper has been materialized in this form with the help of many individuals and institutions. First, the team extends profound gratitude to the respected respondents of banks and finance companies for their valuable and generous support without which the project would not have been successful. Similarly, we are thankful to the Research Committee of NASC and Research and Consulting Services Department for their continuous guidance, facilitation and support in this endeavor. ABSTRACT The study examines insiders' perspectives on the determinants of corporate governance in the Nepalese financial sector. For this, we use a 5-point Likert scale questionnaire developed by CLSA, modified and contextualized to Nepalese setting. The study...
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...|Corporate Governance | |The Importance of Corporate Governance in Organizations | |Final paper | SOUTHERN TAIWAN UNIVERSITY DEPARTMENT OF BUSINESS ADMINISTRATION | | Julia Vassiljeva m987z202 Taiwan 2010 The importance of corporate governance in organizations With the recent financial crisis, companies’ defaults and crushes, the importance of corporate governance has risen significantly. Corporate scandals that have impacted companies all over the world have led to the re-examination of the role of corporate governance in their day to day operations. The Organization of Economic Cooperation and Development (OECD, April 1999) defines corporate governance as follows: "Corporate governance is the system by which business corporations are directed and controlled. The corporate governance structure specifies the distribution of rights and responsibilities among different participants...
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...Models of Corporate Governance 1. Anglo-US Model The Anglo-US model is based on a system of individual or institutional shareholders that are outsiders of the corporation. The other key players that make up the three sides of the corporate governance triangle in the Anglo-US model are management and the board of directors. This model is designed to separate the control and ownership of any corporation. Therefore the board of most companies contains both insiders (executive directors) and outsiders (non-executive or independent directors). Traditionally, though, one person holds the position of CEO and chairman of the board of directors. This concentration of power has led many companies to include more outside directors now. The Anglo-US system relies on effective communication between shareholders, management and the board with important decisions being put to the vote of the shareholders (O'Connell, 2006). 2. Japanese Model The Japanese model involves a high level of ownership by banks and other affiliated companies and "keiretsu," industrial groups linked by trading relationships and cross-shareholding. The key players in the Japanese system are the bank, the keiretsu (both major inside shareholders), management and the government. Outside shareholders have little or no voice and there are few truly independent or outside directors. The board of directors is usually made up entirely of insiders, often the heads of the different divisions of the company. However, remaining...
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