Corporate governance is the process where people in power direct, maintain and lead corporations and thereby create, modify or destroy the structure and system under which they operate. Ever since their birth as an organization form of the business, corporate governance has always been the integral part on the running of joint stock companies. But the concept has come into limelight as a response to corporate failure and widespread dissatisfaction like Sharda Group Financial Scam, Satyam Scandal, Harshad Mehta Scam, Big Bull Scam, Hawala Scandal and many more. In all these scams various people & stakeholders of the companies have been cheated. Corporate Governance is needed in India on priority basis because the Indian legal, administrative environment such that there are possibilities for the corrupt business policies.