We all have heard about this term ” Corporate Governance” right? But what does it actually mean? What makes a organization good at governance or bad, let us try and decode it in this blog.
Corporate governance can be defined as the way an organization is being governed or run. It is a combined term for various aspects like:
- Compliance with all applicable laws
- Transparency with stakeholders & shareholders
- Goodwill of the members of the board
- History of CEO/Promoter
Sounds simple right?? Well if it would have been then it wouldn’t have been a major reason for Corporate Frauds in India.
Why is it that investors fail to identify certain traits at a earlier stage and end up suffering losses? Ignorance of facts, hoping that it would be different this time or stock performance? Well honestly there is no right answer to this.
But one thing we as investors can definitely do is to research upon the above points in detail before putting in our hard earned money into a company.
This is where this page might be of some use to anyone wanting to find out about few such decent opportunities out there. So please follow this page.
Good corporate governance may not necessarily translate into good investment returns but it surely ensures safety of capital and peace of mind to a decent extent
This Blog is a work of human and no AI was used in it*
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