Corporate governance to family governance, which is more relevant

Corporate governance is like the backbone of an organization. It acts as a guide to all the activities and decisions that are made for the company. Through the effective implementation of corporate governance the board of directors are able to devise efficient and effective strategies in order to achieve the company’s goals. This case on corporate governance and its implementation by the board of directors helps us understand the role, importance and the value of corporate governance. The case is made in light of the recent events that had taken place with the Tata Group of companies which is the removal of Cyrus Mistry from the chairmanship of the Tata Sons (the holding company for the entire Tata conglomerate) and from the board of other Tata group companies as well. The case helps in understanding the corporate governance of the Tata Group and the mind-set behind it. Tata Group is a conglomerate which is worth almost a $100 billion dollar and has taken a lot of years of dedication and hard work to reach to the position that it holds today. This wouldn’t have been possible without a strong emphasis on ethics and corporate governance. This case helps the reader understand as to how the company’s governance is implemented and what the areas are of key importance to the company. It also highlights the relation between 2 major conglomerates namely the Pallonji Group (owned by Cyrus Mistry’s father Pallonji Mistry) and Tata Group. Apart from this it also throws light on the roles and responsibilities that the board of directors have towards the company and the stakeholders. After going through the recent events of the Cyrus Mistry removal the case also tries to analyse and present some suggestions that could help in avoiding such situations of conflict. The major emphasis throughout the case is on relating theory with practical events or happenings in order to understand the relevance of corporate governance in a corporation or a company.