Corporate Governance: A Preliminary Study on Current Situation in Bangladeshi Companies and the Need for Corporate Governance

Corporate governance has become an important topic in transition economies in recent years. Directors, owners and corporate managers have started to realize that there are benefits that can accrue from having a good corporate governance structure. Good corporate governance helps to increase share price and makes it easier to obtain capital. International investors are hesitant to lend money or buy shares in a corporation that does not subscribe to good corporate governance principles. Transparency, independent directors and a separate audit committee are especially important. Some international investors will not seriously consider investing in accompany that does not have these things. Several organizations have popped up in recent years to help adopt and implement good corporate governance principles. This Research paper begins with an overview of some basic corporate governance mechanism  the regulation and enforcement relies on the development of an inter-related web of public and private institutions, regulations and rights that underpin the four basic values of corporate governance – transparency, accountability, fairness, and responsibility. Without the guarantee of these institutions, the market-building benefits of good internal corporate governance become tenuous. However, if functioning well, their benefits have far-reaching impact, increasing investor confidence and providing business the legal basis needed to take risk and to grow. Keywords: Board Composition, Management , Ownership Structure, Corporate Governance, Board of Directors