The genius of the Chartered Joint Stock Company was that it “locked in” financial capital that was the key resource required to create “going concern” value. Since the 1600s industry and technology...

Corporate Governance:
Corporate governance influences the degree to which operations and decisions employ the
principles of value-based management to a great extent. It helps manage with ethics. Corporate
governance refers to the policies and procedures adopted by a company, affecting its
administration and interests of various stakeholders. Corporate governance policies are framed
after considering various premises including the goals and strategic objectives of a company
including its financial goals and shareholder’s interests.
As in joint stock companies, the ownership is separate from the management it becomes essential
to establish controls and increase accountability. Corporate governance helps achieve this
objective through well established procedures including accounting and reporting mechanisms.
Corporate governance deals with policies on maintaining ethics and values. It is important that
shareholders and other stakeholders get the information required quickly. The protection of the
wealth of shareholders’ is entrusted to the management. They should take decisions on dividend
policy, deployment of funds, choice of projects and other issues after...