Weaknesses Of Corporate Governance

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Corporate governance is the system by which companies are directed and controlled. De Kluyver’s book focuses on corporate governance in large, pubic held companies. His main point of concern is the distinction of the various roles and responsibilities that CEO’s, investors, managers and other stakeholders in the running of corporate companies. The author also focuses on the rules and regulations that govern the operation of corporate companies with regards to the rights and responsibility of each of the participants in the corporations. De kluyver also stipulates the procedures that corporations ought to emulate in decision making and he goes ahead highlight the significance of the participants in the corporations to encourage consultations before arriving at the various corporate decisions. This book also highlights the importance of the existence of a good relationship between participants in corporations.
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First it demands that future managers should encourage and build good relationships with the rest of the participants of the corporate sector in order to ensure a harmonious corporate environment co-existence in the corporate environment. Corporate governance should encourage the participation of all stakeholders involved in the corporation. This ensures that the atmosphere and attitude in the corporations is conducive for the success of corporate governance.
The study also highlights the significance of involvement in decision making by managers and CEO’s. This ensures proper decision making as well as a consultative and well informed arrival on major corporate decisions. This notion helps the reader understand the significance of involving all participants in corporate governance. It also stipulates that managers should also be responsible and accountable for the running of the

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