The role of the corporate treasurers has changed from a traditional one of securing funds and managing financial risk to a strategic one of driving overall business initiatives. In this new role, treasures have the prime responsibility of advocating better corporate governance principles in the company, both as a means to improve the shareholder value and to enhance investor confidence. This has become very important because the corporate governance practices of the companies are being placed under heavy scrutiny from the regulators and investors following revelations of corporate malfeasance, deception and fraud. This article discuss the role of the treasurers in building a sound governance structure in the companies.

The debacle in Satyam Computers Limited, India's fourth largest software company, has brought the issue of corporate governance in limelight more particularly in India. It is however unfortunate that such important issues gain prominence only after incidents of corporate frauds. The issue of corporate governance was earlier debated when the developments at Enron and WorldCom rocked the world. (Refer Table 1)

As India is on a growth trajectory and is having ambitions of being ranked in the counters of the developed economies, the issue of corporate governance only being surfaced after the Satyam scam is a grave concern. We may claim that the Satyam scam is an isolated case in corporate India, but it is more important to see how the rest of world assesses our seriousness towards the ethics of corporate governance. Do we take the ethics of corporate governance seriously and deeply and drift it away from its ornamental value to run an enterprise towards the principal goal for which the corporate governance term was coined? Largely the practice is to decorate the board, which is at the helm of affairs of corporate governance, with people whom the promoters of the company believe will add some ornamental value to the enterprise. Many a times the promoters induct known people onto the board. Having said that companies (largely) prefer the decorative value of the board over its usefulness. Thus one can easily conclude that the Satyam fiasco is nothing but a true reflection of what routinely and pervasively passes for corporate governance.

The role of treasurer is crucial to today's business especially in ensuring that the company has the cash that it needs to operate the business, adequate risk management systems are in place and finally ensuring that the company complies with the various international standards. The treasurer and cash have a consanguineous relationship and the recent fiasco of Satyam Computers reveals a story of siphoning the cash from the company's balance sheet which puts the role of the treasurer or CFO nothing but on dubious distinction. By the mere definition of a treasurer one understands that wherever there is cash in the company, the treasurer has to be present there. Though the Satyam fraud appears to be a systemic fraud by the senior management, nevertheless such frauds can be mitigated to some extent if corporate governance is complied by the treasurer. In such a scenario it becomes altogether more important for corporate treasurers to revisit the basics of corporate governance and their role in inculcating the principles of corporate governance in a company. This article highlights and revisits the role played by the treasurers or CFO in the compliance of corporate governance.

Treasury Management Magazine, Corporate Governance, Corporate Treasurers, Satyam Computers Limited, Risk Management Systems, Corporate Governance Structure, Budget Planning, Operational risk Control, Capital Market, Corporate Giants, Decision Making Process, Financial Transactions.