Contrary to the perception of many, good governance is not a new phenomenon – the concept of well governed companies has been there ever since formal businesses took over the barter trading system.
“Corporate Governance” received fresh impetus and widespread recognition during the 1990s with launching of the Cadbury Report in the UK and prognosis of East Asian Crisis of the late 1990s and a series of corporate scandals in West including the Enron Scandals. Together the loss of investor confidence and economy generated by the corporate failures brought to forefront the significance of corporate governance.