SANT GADGE MAHARAJ COLLEGEOF

COMMERCES & ECONOMICS

• Name : Dharmendra Mishra

• Roll no: 711 Div : A

Topiccorporate governance for cooperative bank

Synopsis• Corporate governance provides a systematic

guidance to the business world of India, to help them to carry good corporate practices.

• These practices deal with transparency, accountability and the fairness with which business need to be governed.

• The concept of corporate governance has been gaining increasing importance on the backdrop of global competition and at the same time it is under close scrutiny of the regulatory bodies in India.

• The project begins with underlining the objectives of the study.

Corporate Governance for Cooperative Bank

Introduction

• Cooperative banks were established in India to facilitate rural credit, and to full fill the needs of small farmers and businessmen

• They were popular with middle and lower income groups • interest rates .• In 2001-2002, many cooperative banks were rocked by scams.• 1990s, none of the public or private sector banks were willing

to deal with cooperative banks

objectives

• Why there should be a governance over the activity of cooperative banks

• Is banks are following the proper rules and regulation of government & RBI

• Study of Committee made by Cadbury for his financial problem under the corporate governance

Significance and limitations

• Is cooperative banks are properly following a rules and regulation and it should be ethical for all consumers , employees as well as share holder of bank.

Concepts of Governance

• The term corporate governance has come to mean by two things.

• The processes by which companies are directed and controlled.

• A field in economics, which studies the many issues arising from the separation of ownership and control.

GOVERNANCE V/S CORPORATE GOVERNANCE

• What is Governance: -• The term governance is common is used to mean the way

people are governed and the way the affairs of the state are administered and regulated.

• This concept, drawn from the public administration, has received increasingly greater attention in business world in the sense of direction and control of companies by their top management.

• Corporate governance means the idea of ensuring proper management of companies through the institutions and mechanisms available to the shareholders.

Principles

Key elements• Honesty,• Trust• Integrity,• Openness,• Performance orientation, • Responsibility • Accountability,

HISTORICAL PERSPECTIVE OF CORPORATE GOVERNANCE

• Highlight control failures that had allowed several major corporations to make illegal political contributions and to bribe government officials. This led to the development of the Foreign and Corrupt Practices Act of 1977 in USA that contained specific provisions regarding the establishment, maintenance and review of systems of internal control& external control

EMERGENCE OF CORPORATE GOVERNANCE

• The term Corporate Governance has found importance only since the decade of the 1980s. It is mainly due to the financial scandals

• where billions of pounds were lost. Notable cases of the collapse of corporations were BCCI, Polly Peck and the pension funds of the Maxwell Communications Group.

• The focus on the issues of corporate governance culminated in the Cadbury Report on the financial aspects of corporate governance in 1992, the Greenbury Report on directors' remuneration in 1995, the Preliminary and Final Hampel Reports on corporate governance in 1997 and 1998.

NEED FOR CORPORATE GOVERNANCE

• GLOBALIZATION• CONSOLIDATION• COMPETITION• TECHNOLOGY

RECOMMENDATIONS OF COMMITTIES

CADBURY COMMITTEE

Relating to the Board of Directors these are

Relating to the Non-executive Directors recommendations are

For the Executive Directors the recommendations are

CII- Confederation of Indian Industries

• In 1996, CII took a special initiative

on Corporate Governance• Board of Directors

Recommendation on CII

• Single Tier System• Appointment Of Non-Executive Directors• Cap On Directorship• Role Of Non-Executive Directors• Key information that must be reported to and placed

before the board must contain• Setting Up Of Audit Committee

REGULATORY FRAMEWORK:LEGAL COMPLAINCE

SEBI Guidelines On Corporate Governance

• Board Of Directors :• Audit Committee:• Remuneration Of Directors• Board procedure • Management • Shareholders

Report On Corporate Governance

• Board Of Directors • Audit Committee• Remuneration Committee• Shareholders Committee

RBI GUIDELINES ON CORPORATE GOVERNANCEFOR

Cooperative bank BANKS

• On July 2, 2004, RBI issued draft guidelines on ownership and governance in private sector banks in India. These guidelines were placed in the public domain for wider debate and feedback.

• The RBI issued final policy guidelines on 28th February 2005 after taking into account the feedback received. It is considered necessary to lay down a comprehensive framework of policy in a transparent manner relating to corporate governance in the Indian private sector banks

Guidelines

• Minimum capital• Shareholding• Directors and Corporate Governance• Due diligence process• Transition arrangements• Continuous monitoring arrangements

Governance Structure

Meetings of the Central Board and its Committee

Directors/Members of the Central Board / Local Boards – Changes

• Nominations• Appointments

Retirements/Resignations• Appointment / Retirement of Executives• Visits by Foreign Dignitaries

Annexure CONCLUSION

• Researcher researched that the bank which he visited there he found the bank follow the corporate governance of RESERVE BANK OF INDIA UNDER THE ACT

• And the employees get the salary on the monthly basis , there I found the company has minimum numbers of employees and no other branches the bank has

• And minimum liabilities and loan and advances are on the bank

• The bank have get (B) grade in auditing report of RBI

BIBLIOGRAPHY

The whole project is with the courtesy of the following books, and sites :

 

• Books:-

Supplement to RBI bulletin September 2013

Reserve Bank of India (Annual Report)

GOVERNANCE,DEVELOPMENT & ORGATIONAL,MANAGEMENT

Websites:-

http://www.google.co.in/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&ved=0CCoQFjAA&url=http%3A%2F%2Fwww.iimahd.ernet.in%2F~jrvarma%2Fpapers%2Fiimbr9-4.pdf&ei=3juWUvykNIe4rgfRyYCYDg&usg=AFQjCNEf0kIeVdz6V4B0lmkVDD_Me9DgoA&sig2=zASrBoh-0m8cqos6MS3bqQ&bvm=bv.57155469,d.bmk

SANMITRA SAHAKARI BANK MARYADIT• BANK CHAIRMAN : VISHWAS MHAMBRE• ASSISTANT MANAGER : S.R.KOLE

Thank you