Role Of Corporate Governance

1938 Words4 Pages

1.0 Introduction

Corporate governance is the set of processes, customs, policies, laws and institutions affecting the way in which a corporation is directed, administered or controlled. Corporate governance also includes the relationships among the many players involved (the stakeholders) and the goals for which the corporation is governed. The principal players are the shareholders, management and the board of directors. Other stakeholders include employees, suppliers, customers, banks and other lenders, regulators, the environment and the community at large.
Corporate governance is a multi-faceted subject. An important theme of corporate governance deals with issues of accountability and fiduciary duty, essentially advocating the implementation …show more content…

Determine the company's vision and mission to guide and set the pace for its current operations and future development. ii. Determine the values to be promoted throughout the company. iii. Determine and review company goals. iv. Determine company policies

• Set strategy and structure
i. Review and evaluate present and future opportunities, threats and risks in the external environment and current and future strengths, weaknesses and risks relating to the company. ii. Determine strategic options, select those to be pursued, and decide the means to implement and support them. iii. Determine the business strategies and plans that underpin the corporate strategy. iv. Ensure that the company's organizational structure and capability are appropriate for implementing the chosen strategies.

• Delegate to management
i. Delegate authority to management, and monitor and evaluate the implementation of policies, strategies and business plans. ii. Determine monitoring criteria to be used by the …show more content…

The board is directly accountable to the shareholders and each year the company will hold an annual general meeting (AGM) at which the directors must provide a report to shareholders on the performance of the company, what its future plans and strategies are and also submit themselves for re-election to the board.
The objects of the company are defined in the Memorandum of Association and regulations are laid out in the Articles of Association. The board of directors' key purpose is to ensure the company's prosperity by collectively directing the company's affairs, whilst meeting the appropriate interests of its shareholders and stakeholders. In addition to business and financial issues, boards of directors must deal with challenges and issues relating to corporate governance, corporate social responsibility and corporate ethics.
A corporation's shareholders have an ownership interest in the company, by having money invested in the corporation. A "share" is an apportioned ownership interest in the corporation, and the value of a single share can range from less than a 1% interest in the corporation, to

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