Special Thanks of
Gratitude
TO THE MOST ADMIRING……
SHAH MD. TAHA ISLAM SIR
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The Concept Squad
Teammates :
1. Sumaia Haque Nira ID No: 1630 (L)
2. Tasniva Chowdhury Mumu ID No: 1611
3. Munmun Islam Mou ID No: 1615
4. Farzana Afroz ID No: 1616
5. Ummiya Rahman Khan ID No: 1617
6. Tasnim Jannat Tithi ID No:2236
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The Role of Government in Ensuring
Corporate Governance
Contents
Definition of Corporate Governance
Government Interference in Market Economies
Different Roles of Government in the Economy
State Intervention in a Developing Economy
Public Governance and Corporate Governance
Political Governance: Restraints of Power
Forms of Government Regulation
Regulation Enforcement
Role of Government in Limiting Corporate Power
Scope of Government’s Relations with Business
Role of Government in Business
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Definition of Corporate Governance
The structure of rules, practices, and processes used to direct and manage a
company.
The term corporate governance was first used by Richard Eells (1960) to
mean “the structure and functioning of a corporate policy”.
Predicated on the existence of potential conflict of interests, based on
separation of firm’s ownership and control.
Focuses on the distribution of wealth generated by the company.
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Definition of Corporate Governance (Cont.)
“The corporate governance structure specifies the distribution of rights and
responsibilities among different participants in the corporation, such as the board,
managers, shareholders and other stakeholders and spells out the rules and procedures
for making decisions on corporate affairs”
—– (OECD, 1999)
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Government Interference in Market Economies
For inequitable distribution of resources.
To achieve acceptable rate of growth.
To stabilize the economy.
To enforce the government laws.
To look after public goods.
To curve externalities.
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Different Roles of Government in the Economy
The Regulatory Role
Direct and indirect measures of the Government to control and
regulate the private sector.
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