The term “corporate governance” encompasses the structure, customs, policies and procedures that influence the way people manage, direct and control a business. This means developing a long-term vision of business, documenting the processes and procedures that support it, and regularly reviewing the performance. Corporate governance should be based on the principles of accountability and transparency.
This requires that a company divulges all relevant information including financial results meetings, minutes of meetings and their outcomes, changes to normal operations and resignations https://www.boardroomdirect.blog and replacements of key management and board members. This fosters honesty, trust and an openness to communicate both good and bad news with shareholders, staff and vendors, as well as the community and other stakeholders.
The main function of the board of directors of a company is to establish a system of checks & balances that ensures shareholders are treated fairly and that management decisions are sound. This involves making sure that internal controls are effective to ensure compliance with laws and regulations.
Different models of corporate governance are utilized all over the world. Anglo-American models that place the shareholders’ interests at the forefront of decision-making and management are the most commonly used. This model is widely utilized by companies in a variety of countries However, other governance models exist. They are all similar and share some core principles however they differ.
Laisser un commentaire