Governance means the functions of Governing, public governance  would refer to the    a code of conduct Governance  would  refer to the  function  of  governing a state, while corporate Governance would  signify a code  of conduct to be  observed by a corporate entity  reflected through  the action of its board of directors  and  other managing its affairs Governance means the functions of governing, Public governance would refer to the  function of governing  a state, while  corporate  governance would signify a code of  conduct to be observe. This code of conduct is to be obese in order to protect the interests of its owner-shareholders, the stakeholders, the public, the state, the employees and  the  creditors. A company  being not a living entity without  life or firm; with  this  code  of conduct ,underscores the need  to  disclose  to  its  owners  and those  affected by its existence  lenders  creditors  employees, customers government  and  the society, in a  transparent  manner, various aspects  of company’s internal  operations  such  as  financial administration   personal   interest  of those in  management  the extent to which external supervision  exists  and the like.

                        A  Company will be  prosperous  if    its  economy prospers.  In the modern society. it is  soc a  wealth  of  a country . The history  of the  origin of  a corporate entity  as an  instrument  to  achieve  the  growth  of  the wealth   of  the shareholders  and  the community at  large  would show  what  it  is  the  best  known  form   in which  business  of  an   enterprise  could  be  carried  on. It is   said  that a  corporate     Entity  is  one  of the  most  genius   inventions  of  man.  A  corporate ownership from management, attract capital with  limited  liabilities but  with maximum  beneficial  returns  and  , thus .initiate the   Creation  of wealth  of a  community.

entity  is  a living  entity  without  life   or form; and  is  a   creation  of law ,the very begging  and the  best  code  of Governance of  a  company is in  regulatory  form  o The   subject  of corporate governance existed  since  the  time  this  ingenious  invention  of a corporate f companies Act 1956,

 A part  from  the  regulatory   provisions , there are  certain  best   practices  which   have  been  evolved  by  different national  and international organizations which are  voluntary and  if adopted , the corporate  sector  in particular  and  the society as  whole  would  stand  to  benefit.

Democracy  is  a Government  of the people ,by  the people and  for  the people, a  corporate  is  a  creation  of law   of  the  society. Similarly  as in  a  state  there  is a ‘GOVERNOR..Members   of  the   Legislature  elected  by  the  people  and  the  management the  president  and the council  of ministers   to  govern  it and  the governed – the  people  in the country , so  also  in a company  ,being   a  corporate  entity, there is the  governor  board  of  directors  and  the staff  and  the  governed  the shareholders  and  the  stakeholders.

The president and the council  of ministers  are  the agents of the members of the legislature  who  choose  them . So  also  the directors  and  the management  are the  agents  of the  shareholders  and

Stakeholders .As  agents, it  is  their responsibility  to  govern  in a transparent manner  keeping  in mind  the welfare  of the  persons governed.

The Government   represented by  the president  and  the council  of ministers  must  act within the  framework  of  the constitution.  A  Company’s board  of directors  and  the  management should work within  the   framework  of  its  memorandum  and  articles of  association. The Government not  only  frame  s Rules  under  which  it carries  out  its  functions  ,but   also n frames Rules  under which  a corporate  entity could function ,and  thus  in a  country   where  its  Government  functions   better  a corporate  entity  also  generally  function better.

Here  Government  and corporate  sector are   running  for the betterment  of  society.  It  is  necessary  that the  affairs  and  management   should    be  in  a proper manner. The governed  is  made  aware  of its  operations  to  judge whether  its  performance  meets  with  their  aspirations  and  expectations   and   in the  larger interest  of  the  society. Thus  ,social  responsibility   is  one  of the  prime  objects which  need  to keep  in mind  by  both  the Government  and the corporate  sectors.

It  is  separation  of management  from the  ownership  which gives rise  to  the  need  that the  management should  be  properly  supervised  that they should be accountable  to the owners  and  others  who  have  stake   in  the  company. They  should  be  fair  to those who  do not  control it . Minority shareholders  and the  society  should observe  and  follow ethical  standards in its   dealings  and should  inform  all  the  interested  parties  how it  is managed  by  making  appropriate disclosures  and ,thus, act in a transparent manner. This proper  governance will result  in  the best yield and  value of the security of lender  and contributing to the growth of the gross national product of the country.

 It  is said the main sutra  of corporate governance  are  transparency  accountability  fairness and responsibility. However  there  is  one single sutra  i.e. safety.

In the context of corporate governance  sutra signifies  the  protection of the shareholders  and stakeholders from the greed of the few to seek personal  gain at the cost of money .Forsaking the principles  of good governance of corporate sector as the word ’man’ means to think and the word ‘tra ‘means to protect or  co free .Thus the word safety includes:

[1]SUPERVISION

[2]Accountability

[3]Fairness

[4]Ethical behavior

[5]Transparency

[6]Yield-includes- productivity

Profit sharing and value addition corporate governance should ensure safety for the  sharehoilder.,stakeholders government  and the society.,  a  safety that gives at large strength  and lends support to the edifice of corporate governance.

Investment is ultimately  an act of faith in the ability of a corporation ‘s’management.When  an investor invests  money in a corporation  he expect  to the board and the management to act as trustees and ensure the safety of the capital and also to earn rate of return  that is higher than the cost OF CAPITAL. In this regard investors expects to the management to act in their best  interest at all times and adopt  good corporate governance  practices.