Corporate Governance in India

What is the primary purpose of corporate governance in India?

• Maximizing shareholder wealth

• Maximizing CEO compensation

• Maximizing employee benefits

• Maximizing customer satisfaction

Which regulatory body/bodies in India is/are overseeing corporate governance practices

• Securities and Exchange Board of India (SEBI)

• Reserve Bank of India (RBI)

• Ministry of Corporate Affairs (MCA)

• Competition Commission of India (CCI)

What is the role of independent directors in corporate governance?

• To execute management decisions

• To represent the interests of shareholders

• To provide objective oversight and advice

• To manage day-to-day operations

Which of the following is NOT considered a core principle of corporate governance?

• Transparency

• Accountability

• Fairness

• Profitability

What is the difference between corporate governance and corporate social responsibility (CSR)?

• Corporate governance focuses on internal operations, while CSR focuses on external impact.

• Corporate governance is mandatory, while CSR is voluntary.

• Corporate governance is concerned with legal compliance, while CSR goes beyond compliance.

• There is no difference between the two concepts.

What are the key features of the Companies Act, 2013 in relation to corporate governance?

• Introduction of independent directors and mandatory CSR spending

• Increased disclosure requirements and whistleblower protection

• Streamlined regulations and reduced compliance burden

• Focus on shareholder value maximization and market deregulation

What are some of the recent initiatives taken by the Indian government to improve corporate governance?

• Increased penalties for non-compliance with corporate governance regulations and Establishment of the Investor Education and Protection Fund

• Introduction of the National Corporate Governance Framework

• Both A & B are incorrect

• Both A & B are correct

How can investors assess the quality of corporate governance in a company?

• By analyzing the competitor company's financial performance

• By ignoring the company's corporate governance disclosures

• By attending shareholder meetings and engaging with management

• All of the above

What does the term "related party transactions" refer to in corporate governance?

• Transactions between competitors

• Transactions between family members

• Transactions involving subsidiaries

• Transactions with entities having a special relationship with the company

Which financial statement is required to be reviewed by the Audit Committee before its submission to the board?

• Income Statement

• Balance Sheet

• Cash Flow Statement

• All of the above