Analysis of Corporate Governance
Analysis of Corporate Governance of BAJAJ AUTO LTD.
Company Profile
Bajaj Auto Limited is one of India’s premier two and three wheeler automobile manufacturing companies. It was founded in the year 1945. For the financial 2009-10, the company had sales of Rs. 12152.74 crores and net income of Rs. 1597.22 crores. It exports its two and three wheeler vehicles to more than 50 countries. The company as of 2010 accounts for 24.3% of the Indian motorcycle market.
Corporate Governance practices of Bajaj Auto Ltd.
Here are the significant points regarding the corporate governance of Bajaj Auto followed by an analysis of their effectiveness and impact.
* The company has stated that its corporate governance policy is centered on 4 concepts of transparency, fairness, disclosure and accountability.
Any good governance has 8 features that characterize it. They are: participative, consensus oriented, accountable, transparent, responsive, effective and efficient, equitable and inclusive and follow the rule of law. Bajaj Auto as from its statement on corporate governance, we can conclude that it follows and implements at the maximum 5 out of the 8 features necessary for good governance ( the 4 features that it has explicitly stated and the 5th feature being implicitly assumed that it follows the rule of law). Thus there is more room for the company to improve its corporate governance policies. It must strive to incorporate all the 8 features that are essential to implement good governance. * The company has been following corporate governance policies even before SEBI rules and the clause 49 of the listing agreement came into force.
This is a good sign of the commitment shown by the company towards effective corporate governance and indicates that the company believes in the principles of transparency, fairness, disclosure and accountability. * The company’s chairman Rahul Bajaj is also an executive. Thus according to the rules the company’s board
Company Profile
Bajaj Auto Limited is one of India’s premier two and three wheeler automobile manufacturing companies. It was founded in the year 1945. For the financial 2009-10, the company had sales of Rs. 12152.74 crores and net income of Rs. 1597.22 crores. It exports its two and three wheeler vehicles to more than 50 countries. The company as of 2010 accounts for 24.3% of the Indian motorcycle market.
Corporate Governance practices of Bajaj Auto Ltd.
Here are the significant points regarding the corporate governance of Bajaj Auto followed by an analysis of their effectiveness and impact.
* The company has stated that its corporate governance policy is centered on 4 concepts of transparency, fairness, disclosure and accountability.
Any good governance has 8 features that characterize it. They are: participative, consensus oriented, accountable, transparent, responsive, effective and efficient, equitable and inclusive and follow the rule of law. Bajaj Auto as from its statement on corporate governance, we can conclude that it follows and implements at the maximum 5 out of the 8 features necessary for good governance ( the 4 features that it has explicitly stated and the 5th feature being implicitly assumed that it follows the rule of law). Thus there is more room for the company to improve its corporate governance policies. It must strive to incorporate all the 8 features that are essential to implement good governance. * The company has been following corporate governance policies even before SEBI rules and the clause 49 of the listing agreement came into force.
This is a good sign of the commitment shown by the company towards effective corporate governance and indicates that the company believes in the principles of transparency, fairness, disclosure and accountability. * The company’s chairman Rahul Bajaj is also an executive. Thus according to the rules the company’s board