Fundamental Glossary / Management & Corporate Governance
Corporate Governance Score
A vendor's or an exchange's numerical grade of governance practices.
Formula
Built from disclosed items: board independence, audit opinion, related-party scale, pledging, penalties, and filing delays. Each publisher uses its own weights.
What it means
A score compresses a messy set of facts into one number so that screens can rank companies. It is a starting filter, not a research conclusion.
NSE and several data vendors publish governance or quality scores. They rely on what is disclosed. They cannot see what was never written down.
How to read it
Use a low score as a list of questions. Use a high score as a reason to check that the inputs are current, not as a reason to skip the annual report.
What to watch
Scores change when the methodology changes, not only when the company changes. Compare a company with itself on one method. Do not average two vendors.
This note explains the term. It is not a research recommendation, a target price, or a comment on any security. Ratios and regulatory thresholds change; use the latest filing or circular for a live figure.