The year 1932 is considered as the benchmark of corporate governance along with the published book; “The Modern Corporation and Private Property”. In the economic crisis of the thirties, the book described the management of companies preceding the economic crisis of the time. Subsequently, there was the need for managers to abide by the best long term interest of shareholders. These events at the time became the initial phases and the recommendations for good corporate governance as an essential aspect of corporate environment with the shareholders and stakeholders as the pillar. (Sundaramurthy 2003, p.397–415)
Corporate governance assists to boost shareholder confidence and self-assurance in the business and synchronises the shareholders and managers of companies. It aspires to advance the functioning of the business bodies. Furthermore, corporate governance seeks to advance the organisation’s board members to hold bosses accountable and providing transparency between the concerns of shareholders and managers.