 Bismillah Alikum everyone, welcome back to the corporate course governance, the course on corporate governance and last time we basically were talking about the two fundamental models which tend to dominate corporate governance. Today we are going to take it a little bit ahead and we are going to be talking about the OECD model and also the corporate environment which exists within the United States of America because most of the capitalistic world is dominated by that particular system. Now when we look at the 21st century then the whole paradigm is shifting and in this paradigm shift what we see is that there is more uncertainty, there is more ambiguity and there is more flexibility within the conventional systems which used to exist and one of the biggest examples that we can see in the 21st century is the emergence of virtual currencies of which the bitcoin is dominating the market and you have seen that in the past few months bitcoin dropped from $71,000 per coin to less than $33,000 per coin which means that more than half of the market capitalization was totally vanquished and again we see that in Ethereum also and in the lesser known coins also what we see is that there is a 100 percentile difference between going up and going down. Now this creates a lot of market volatility and uncertainty and therefore in these type of environments it has become extremely critical that we have corporate governance. Now what we see is that through these strong systems we can counter all of these uncertainties and ensure that there is a level playing field and that is the most important thing which has to be done. Now poor governance tends to undermine the very investor confidence that exists within the markets and that is why we have to ensure that we can retain the investor confidence. Secondly poor governance is also a very weak indicator of performance and we cannot understand the different dimensions of performance just like what we see in Russia and Asia. Now when we see all of the Russian block then we see that those markets are basically propped up by the government and therefore there is unequal and there is hardly any competition because over there we have oligarchies and we also have those huge conglomerates which tend to dominate the market and therefore competition is eliminated. In Asia what we have seen is that in countries like Thailand, in countries like Malaysia, in countries like Indonesia and also in the far eastern block there was this great depression which took place again because of weak governance systems and therefore it has become even more critical that in this past moving economic world we can understand these different equilibriums which are being created and thereby create stability. A new boom which has been emerging since the past 25 years is the Chinese market. That Chinese market is now dominating the whole globe with it emerging now as the largest economy in the coming years and therefore the dynamics of the Chinese market would also have to be considered while we are understanding corporate governance and its different dimensionalities and paradigms and that is extremely important. If we don't do that we are going to end up in a quagmire situation which would shake the established markets which tend to exist currently. Now for this particular reason OECD when we look at the different principles it talks about the rights of shareholders, it talks about equitable treatment of shareholders, it talks about role of shareholders in corporate governance, disclosure and transparency and responsibilities of the board. So if we look at the first three then there is a factor of commonality the rights of the shareholder, the equitable treatment of shareholders and the role of stakeholders in corporate governance. In all models we see that they tend to exist but then we see that in the OECD principles and OECD basically stands for organization of economic cooperation and development that disclosure and transparency. Now disclosure is no more a prerogative, disclosure is no more an option, disclosure is no more a luxury, disclosure is now mandatory. Therefore in the new accountability laws what we see is that if someone is not disclosing the miscovenants, the mispieces or the irregularities of anyone that he or she knows within the institution then he or she becomes an accomplice and that ensures transparency and another way of transparency is establishing open communication systems and also barrier free communication systems so that if there is any wrong doing happening then people would be able to disclose what is going wrong at the appropriate level. So disclosure and transparency go hand in hand and that is why OECD is focusing upon this and the second point is the responsibility of the board. In other models the responsibility of the board has been enumerated but in the OECD principles the board's role becomes not only strategic but also tends to influence the operations of the organization and then there is distinctive segmentation of the board, the top management, the middle management and the employees at the shop floor level or at the lower levels. So again there is a process of cross accountability also taking place and ensuring that the benefit goes to the stakeholders, to the shareholders and to the institution and that is the very essence of the OECD principles. Now when we look at the growth model of US then we see over the past decades there has been a transition towards more accountability, more transparency and more better governance. If we look at the laws which exist over there then we see the Foreign and Crub Practices Act of 1977 we also see the Securities and Exchange Commission of 1977 emerging in which mandatory reporting or internal financial controls became a part of the whole process. So reporting on internal financial controls became a very important ingredient of good governance within the US and what we see is that in the past about 40 years all of these developments have started taking place in 1989 we also see the Whistleblower Protection Act of the US emerging. Now all of these are integrated, these laws are integrated into each other to ensure that there is better governance within the corporate world and also the governance system which tends to exist. So now America has taken the step ahead. So what we see is that in 1985 there was a huge debacle of the savings and loans scandal and in that billions and billions of dollars was written off especially of the small investor and there was this huge depression which took place and all of that is because of this lack of governance which existed within the financial institutions of savings and loans which we call the S&L debacle of the US in 1985. We also see that in 1987 as a consequence of the S&L scandal the Treasury Commission was basically created and based upon that we see that there was the COSO report of 1992 which emerged with new frameworks whereby the functioning of corporations was going to be managed on a more micro level and the role of the Securities Exchange Commission was further expanded to ensure that a similar example does not recur. But like I mentioned that now in the 21st century we are having new paradigms emerging like the virtual currency and many corporations investing in this particular currency and we see that even one statement by Elon Musk can totally make the market either go up or go down and that is a very fluid situation which is a now challenge to corporate governance on a global and on a national level. And now what we see based upon the S&L scandal which took place is that the whole corporate governance market and landscape of America started to change and what we see is that the COSO Commission basically ensured that there would be better governance mechanisms introduced throughout the different corporations and corporations would not be working secretly and would not be hiding the facts which are over there they had to disclose them and based upon that we see that in the 21st century better governance emerged even though there was the Enron debacle, there was the 3M debacle but overall there was a better structure, there was better regulation, there were better frameworks and there were better rules and regulations and that led to a more stable corporate governance framework not only for the US but also for the whole globe. Thank you so much.