The term ‘Corporate Governance’ is not precisely defined anywhere. Some of the definitions are, however, as follows:
“Corporate governance is not just corporate management, it is something much broader to include a fair, efficient and transparent administration to meet certain well-defined objectives. It is a system of structuring, operating and controlling a company with a view to achieve long-term strategic goals to satisfy shareholders, creditors, employees, customers and suppliers, and complying with the legal and regulatory requirements, apart from meeting environmental and local community needs. When it is practiced under a well-laid out system, it leads to the building of a legal, commercial and institutional framework and demarcates the boundaries within which these functions are performed.”1
“Corporate governance is a system by which companies are run. It relates to the set of incentives, safeguards and the dispute resolution process that are used to control and coordinate the actions of the agents on behalf of the shareholders by the Board of Directors. Shareholders are responsible for appointing the directors and auditors. Creating of residual value is the primary concern of shareholders, but the process of value creation and its legality are equally important. Hence, corporate governance relates to a code of conduct the management of the company observes while exercising its powers.”2
“Corporate governance can be defined as a set of systems and processes which ensure that a company is managed to the best interests of all the stakeholders. The set systems that help the task of corporate governance should include certain structural and organisational aspects, the process that helps corporate governance will embrace how thing are done within such structure and oranisational systems.