Issues Related to Corporate Governance
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Corporate governance refers to the system of rules, practices, and procedures by which a company is directed and controlled. It includes the relationship between the company's operations, its board of directors, its shareholders, and other stakeholders, and provides the framework for achieving the company's objectives.
Main Objectives of Commercial Governance:-
1. Ensuring Accountability:- Commercial governance ensures that the company's operations are accountable to its shareholders and other stakeholders.
2. Protecting Shareholders' Rights:- Commercial governance ensures that shareholders' rights are protected, including their right to receive accurate and timely information about the firm's performance.
3. Promoting transparency and risk aversion:- Commercial governance promotes transparency and risk aversion by motivating companies to provide accurate and timely information about their financial performance and other matters.
4. Ensuring compliance with laws and regulations:- Commercial governance ensures that companies comply with all applicable laws and regulations.
Issues
1. Conflict of interest:- A conflict of interest can occur when directors or directors have specific interests that are against the interests of the company.
2. Lack of clarity and transparency:- Companies may fail to provide transparent and timely information about their financial performance and other issues.
3. Biased board composition:- Boards may lack diversity, independence, and relevancy, which may result in poor decision-making.
4. Lack of internal controls:- Corporations may not have adequate internal controls, which may result in financial reporting crimes and other threats.
Solutions
1. Enforce strong disclosure requirements of financial information, business practices and governance structuresRegular and detailed performance.
2. Establish Independent Boards:- Ensure that boards are composed of independent, separate and educated directors.
3. Implement Effective Threat Governance Establish strong threat governance systems and ensure that boards and directors have responsibility for threat monitoring.
4. Align Superintendent Compensation with Performance Structure Superintendent compensation packages to align with company performance and shareholder interests.
Public Enterprises
1. Companies Act, 2013:- Strengthened the nuances of commercial governance, including conditions for independent directors and oversight panels.
2. SEBI (Listing Score and Disclosure Conditions) Regulations, 2015:-Prescribed better risk conditions and commercial governance norms for listed companies.
3. National Financial Reporting Authority (NFRA):- Established to oversee and regulate decision makers and ensure independence of decision makers.
4. Commercial Governance Code:-Issued by SEBI to provide guidance on modern practices in commercial governance.
International best practices,
•Dodd-Frank Wall Street Reform and Consumer Protection Act, legislated in the US to strengthen commercial governance, risk governance and non-supervisory oversight.
By implementing such findings, governments, regulators and associations can promote better commercial governance, cover the interests of stakeholders and enable trust and confidence in the commercial sector.
PM Vidyalakshmi Yojana
PM Vidyalakshmi Yojana is a Central Sector Scheme approved by the Union Cabinet, aimed at providing financial assistance to meritorious students pursuing higher education. The scheme has several factors and benefits that make it an attractive option for students.
Factors of PM Vidyalakshmi Yojana
• No collateral loan:- Students can take loans bearing the full cost of education and expenses without any lien or sponsor.
•Loan guarantee:- For loans up to Rs 7.5 lakh, the government provides 75% loan guarantee so that banks can lend to more number of students.
• Interest annuity:- Students from families with a periodic income of more than Rs 8 lakh are eligible for 3% interest annuity on loans up to Rs 10 lakh during recessionary periods.
Benefits of Pradhan Mantri Vidyalakshmi Yojana
•Easy access to higher education facilities:- This scheme provides financial assistance to meritorious students, who can pursue higher education without any financial burden.
•Ease of operation process:- This scheme has a single-window system, through which students can apply for education loan and interest annuity in a simple manner.
•Priority to underprivileged students:- This scheme gives priority to students from underprivileged backgrounds, some of whom are from government institutions and are pursuing postgraduate or professional courses.
Conclusion
Pradhan Mantri Vidyalakshmi Yojana is a major policy of the government towards providing financial assistance to meritorious students pursuing higher education.
Social Media
Social media has indeed changed the ways we connect with the Republic, but its impact is twofold.
On the one hand, social media has normalized information to the extent that citizens can distinguish a greater range of news sources as well as engage in public conversation.
1. Fake news:- Social media has also been accused of contributing to the spread of false information, disinformation, and hate speech, which can actually erode popular institutions and processes.
2. Checks and balances:- The absence of controls and fact-checking measures on social media sites has opened up a groundswell where fake news can flourish quickly, often with disastrous consequences.
3. Bias:- On the other hand, social media has been accused of preserving echo chambers, in which individuals only interact with information that confirms their impulses.
4. Polarization:- This can lead to political polarization and a decline in civic conversation.
So, what can be done to mitigate the negative effects of social media on the republic?
Solutions
1. Regulation:- Governments and non-supervisory bodies must take action to regulate social media platforms and ensure they are responsible for the content they host.
2. Media knowledge:- Teaching citizens to critically evaluate online information and identify misinformation is vital in establishing a healthy republic.
3. Fact-checking:- Independent fact-checking associations and enterprises can help combat the spread of misinformation on social media.
4. Promote diversity and inclusion:- Social media platforms must make way for diversity and inclusion, and also assist in the spread of hate speech and discriminatory content.
In conclusion, social media has both empowered and endangered the republic. While it has normalized information and made rallying easier, it has also spread misinformation, propaganda, and hate speech.
