Evaluate how the NATIONAL GRID TRANSCO applies the expectation and Essay

Evaluate how the NATIONAL GRID TRANSCO applies the expectation and requirements of corporate governance - Essay ExampleThis framework even encompasses procedures and rules which are undertaken enchantment framing corporate affair decision. It highlights the process by means of which are objectives are set and achieved in terms of market, social and regulatory environment. Governance machine takes into consideration different elements such as monitoring decisions, actions and policies of agents as well as corporations. On basis of this framework, actions undertaken by management are closely monitored in order to eliminate any form of agency risks. However contemporary interest of this concept is related to mitigating conflicting interests amongst stakeholders. There are various approaches enforced to prevent such conflicts such as well defined processes, institutions, laws, policies and customs. An important component of corporate governance is extent and nature of corporate accoun tability. In this poll corporate governance framework of a particular firm will be thoroughly analyzed known as subject Grid Transco. It is a multinational company of electricity and gas utility, and has its headquarters in London. The firm has its principal operations in North-eastern United States and United Kingdom. National Grid Plc., was founded in 1990 and in current decade has a market capitalization of 31.4 billion. The company has gone through a series of spinal fusions and acquisitions but the most important merger took place in 2002 where Transcos owner Lattice Group Plc., merged with National Grid Group. This in turn resulted into a new organization which came to be known as National Grid Transco Plc. In this study corporate governance expectations will be analyzed on the basis of practices undertaken by National Grid Transco.There are different theoretical frameworks related to corporate governance but some amongst them holds great deal of significance in youthful e ra. Finance or principal-agent model is a well known corporate