**6. Global governance trends**

The boards are accountable to the company, shareholders, and society at large. Boards are expected to deal fairly with stakeholders. The shift in the governance enhances the board's responsibilities, independence, quality, and evaluation. OECD Report [21] highlighted the rights of shareholders, their equitable treatment, disclosure, transparency, and role of the board. The governance framework should protect the interest of minority shareholders' rights in the company. It also facilitates its stakeholders by creating wealth, employment, and a sustainable business environment. The framework should underpin the board's accountability to corporates and members. In general, there is an increased realization among corporates that corporate governance is a tool to create transparency, accountability, and trust to enhance investment, stability, and growth by value creation. The following **Table 2** depicts phase-wise governance issues and various committees.

Modern corporate governance emphasizes shareholder value creation. It is treated as an integrated approach considering the rights and interests of stakeholders, social-economic concerns, risk mitigation methods, etc. The following are some of the latest trends in governance empowering the boards and the stakeholders.

1.**Enhanced roles of board:** The committees play a significant role in implementing the governance codes. There are two types of controls. They are governance and internal control systems**.** The audit, nomination, and remuneration committee, risk management committee are the three prominent governance committees, while the risk management committee is


#### **Table 2.**

*Phase-wise governance issues and various committees.*

treated as the internal control committee. **Table 3** depicts the various corporate governance regulatory bodies responsible in different countries.

**Table 4** details the governance control and internal control committees in various countries. India mandates the Audit, nomination, and remuneration committee, CSR Committee, Stakeholders Grievance Redressal committee for all the listed companies. In Singapore, some companies have a common Audit and Risk Management Committee.

#### 2.**Greater attention towards director independence**

Independent Directors act as coaches and mentors to companies. The role of an independent director is very enhanced in the present context. They help in improving credibility and governance standards by working and helping in managing risk. The most significant contribution of the IDs must enhance the competence of the board to take the objectives and decisions. Independent directors are responsible for ensuring better governance by actively involving in various committees constituted by the company. IDs are truly independent and have the right to question the board in all its decisions.

#### 3.**Introduction of lead directors**

A lead director is a board member who is an independent member of the board elects. The Lead Director has certain important duties relating to the board [23]. This Director often is the chair of the governance committee of the board. SEC and NASDAQ required listed companies with non-independent chairpersons to elevate one of their independent directors to the position of lead directors. The lead Director maintains good relationships and functions with the board and the stakeholders [24].

#### *Recent Advances in Corporate Governance: A Global View DOI: http://dx.doi.org/10.5772/intechopen.100135*


**Table 3.**

*Regulators for corporate governance.*


#### **Table 4.**

*Governance and internal committees.*

#### 4.**Board evaluations**

Board evaluation ensures a good understanding of the directors' duties, adopts effective governance practice, and protects the community and shareholders. Board evaluation would help the directors to have an enhanced role and act in good faith in promoting the interest of the stakeholders. Higgs Report, 2003 was one among the first board performance evaluation reports which highlighted the role and effective functioning of independent directors in the UK. Board evaluation examines the role of the board and the entailing responsibilities and assesses how effectively the board fulfills these. By doing so, the boards can identify the key challenges faced by the organization and add real value to corporates. OECD's <sup>5</sup> has identified four dimensions of board evaluations. Board evaluation includes (i) Monitoring and risk management, which highlights parameters such as compliance, law, regulation, whistleblower approach, related party transactions, conflict, etc., (ii) Strategy and business involving innovation, growth, value creation, network connections, etc., (iii) composition and diversity includes gender, skill, integrity, independence, knowledge, etc. (iv) board dynamics and process details on commitment, engagement, preparation, schedule, etc.

<sup>5</sup> Board Evaluation: Overview of International Practices, OECD, 2018.
