Corporate Governance Committees

Corporate Governance
Committees
Cadbury Committee, 1992

The Cadbury Committee investigated the
Accountability of the board of directors
to shareholders and to the society.
Proposed 19 recommendations in the
nature of guidelines the board of directors,
non executives directors and executive
directors have to follow.

uplift the low level of confidence both in
financial reporting and in the ability of
auditors to provide the safeguards which
the users of company's reports sought and
expected
review the structure, rights and roles of
board of directors, shareholders and
auditors by making them more effective
and accountable

address various aspects of accountancy
profession and make appropriate
recommendations, wherever necessary
raise the standard of corporate
governance;
Paul Ruthman Committee

This was Constituted later to deal with the
said controversial point of Cadbury
Report.
The effectiveness of the companys
system of internal control
All relevant control objectives including
business risk assessment and minimizing
the risk of fraud
Greenbury Committee, 1995

This was set up to identify good practices
by the confederation of British Industry in
determining directors remuneration and to
prepare a code of such practices for use
by public limited companies in United
Kingdom
Hampel Committee, 1995

Was set up to promote high standards of
corporate governance both to protect
investors and preserve and enhance the
standing of companies listed in London
Stock Exchange
Auditors to report privately to the directors
Directors to review all
The Combined Code, 1998

The Combined code was subsequently
derived from the Hampel Committees final
report, Cadbury Report and the Greenbury
Report.
The Combined code was appended to the
listing rule of the London Stock Exchange
Compliance of the code is mandatory for all
listed companies in the United Kingdom
The Turnbull Committee, 1999

Set up by the Institute of Chartered
Accountants in England and Wales to
provide guidance to assist companies in
implementing the requirement of the
combined code relating to internal Control
The Turnbull Committee, 1999

Provided guidance to assist companies in
implementing the requirement of the
combined code relating to the internal control
Recommended that where companies do not
have an internal audit function, the board
should recommend the need of one
Board should confirm the existence of
procedures for evaluating and managing key
risk.
World Bank on CG
One of the earliest international
organization to study on CG and to suggest
guidelines
Recognizes the complexity of the concept
and focuses on the principles such as
Transparency
Accountability
Fairness
Responsibility
OECD Principles
Organisation for Economic Cooperation
and Development - one of the first nongovernmental organization to give
principles and practices to govern CG.
The right of shareholders
Equitable treatment of shareholders
The role of stakeholders in CG
Disclosure and Transparency
The responsibility of the board
McKinsey Survey on CG
Governance
Financial Performance Increased
Transparency was more
Increased Investor Confidence
Kumar Mangalam Birla Committee, 1999

Appointed by SEBI
18 Members
Promotion and raising the standard of CG
Landmark in the evolution of Corporate
Governance in India
Suggested Mandatory Recommendations
and Non Mandatory Recommendations
Mandatory Recommendations
Applicability
Board of Directors
Audit Committee
Remuneration Committee of the board
Board Procedures
Management
Shareholders
Manner of Implementation
Non Mandatory Recommendations
Chairman of the Board

Remuneration Committee
Shareholders Right
Postal Ballot
Naresh Chandra Committee Report,

2002
Appointed as a high level committee to
examine various CG issues by the
department of companies affairs
The report was forwarded to Kumar
Mangalam Birla committee
Narayana Murthy Committee

Report, 2003
Setup by SEBI
Review the performance of CG
To determine the role of companies
responding to rumour and other price
sensitive information circulating in the
market in order to enhance the
transparency and integrity of the market
Irani Committee Report, 2005

Government of India constituted an expert
committee on Company law
Setup to structurally evaluate the views of
several stakeholders in the development
of company law in India
Came out with suggestions that will go a
long way in laying sound base for
corporate growth.
Why is it considered that the Cadbury committee report is the

landmark in the evolution of CG
What was the objectives behind setting up Cadbury Committee
Explain in detail OECD Principles in CG
Discuss Critically the recommendations of Kumar Mangalam Birla
Committee

Corporate Governance Committees

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Corporate Governance Committees

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Corporate Governance

Cadbury Committee, 1992

Cadbury Committee, 1992

Cadbury Committee, 1992

Paul Ruthman Committee

Greenbury Committee, 1995

Hampel Committee, 1995

The Combined Code, 1998

The Turnbull Committee, 1999

The Turnbull Committee, 1999

Kumar Mangalam Birla Committee, 1999

Non Mandatory Recommendations

Chairman of the Board

Naresh Chandra Committee Report,

Narayana Murthy Committee

Irani Committee Report, 2005

Why is it considered that the Cadbury committee report is the

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