Corporate Governance
DEFINITION OF CORPORATE GOVERNANCE
Corporate governance is a multi - facet issue. The objective is to improve economic efficiency of governance of corporation. It involves a set of relationship between company's management, its board, its share and other stakeholders . It indicates the rules, regulations, customs, principles, practices and the structure of an organization through which the organization carry on its activities.
Corporate governance has been defined by the some scholars as follows:
" Corporate governance is a system which ensures investors to get returns from their investment".
The journal of finance .
" Corporate governance is the process narrowly it can be said the relationship between the corporation and the shareholders and broadly the relationship between the corporations and society"
The finance times
" Corporate governance is a system which is accommodating the practices of corporations, transparency, responsibilities and accountability".
James wolfensohn
" Corporate governance is the relationship between the share holders, BOD, cEO and other stake holder"
Arthur Levitt
OECD PRINCIPLES OF CORPORATE GOVERNANCE
1.Ensuring the basis for an effective corporate governance framework:
The corporate governance framework should promote transparent and efficient markets be consistent with the rule of law and clearly articulate the division of responsibilities among different supervisory, regulatory and enforcement authorities.
2.The right of shareholders and key ownership function:
The corporate governance framework should protect and facilitate the exercise of shareholders right.
3. The equitable treatment of shareholder:
The corporate governance framework should ensure the equitable treatment of all shareholders, including minority and foreign shareholders. all shareholders should have the opportunity to obtain effective redress for violation of their rights.
4.The role of stakeholders in corporate governance:
The corporate governance framework should recognize the rights of stakeholders, established by law or through mutual agreements and encourage active co- operation between corporation and stakeholders in crating wealth, jobs and the sustainability of financially sound enterprise.
5. Disclosure and transparency:
The corporate governance framework should ensure that timely and accurate disclosure is made on all material matters regarding the corporation including the financial situation, performance, and governance of the company.
6. Responsibility of the board:
The corporate governance framework should ensure the strategic guidance of the company, the effective monitoring of management by the board
Corporate governance is a multi - facet issue. The objective is to improve economic efficiency of governance of corporation. It involves a set of relationship between company's management, its board, its share and other stakeholders . It indicates the rules, regulations, customs, principles, practices and the structure of an organization through which the organization carry on its activities.
Corporate governance has been defined by the some scholars as follows:
" Corporate governance is a system which ensures investors to get returns from their investment".
The journal of finance .
" Corporate governance is the process narrowly it can be said the relationship between the corporation and the shareholders and broadly the relationship between the corporations and society"
The finance times
" Corporate governance is a system which is accommodating the practices of corporations, transparency, responsibilities and accountability".
James wolfensohn
" Corporate governance is the relationship between the share holders, BOD, cEO and other stake holder"
Arthur Levitt
OECD PRINCIPLES OF CORPORATE GOVERNANCE
1.Ensuring the basis for an effective corporate governance framework:
The corporate governance framework should promote transparent and efficient markets be consistent with the rule of law and clearly articulate the division of responsibilities among different supervisory, regulatory and enforcement authorities.
2.The right of shareholders and key ownership function:
The corporate governance framework should protect and facilitate the exercise of shareholders right.
3. The equitable treatment of shareholder:
The corporate governance framework should ensure the equitable treatment of all shareholders, including minority and foreign shareholders. all shareholders should have the opportunity to obtain effective redress for violation of their rights.
4.The role of stakeholders in corporate governance:
The corporate governance framework should recognize the rights of stakeholders, established by law or through mutual agreements and encourage active co- operation between corporation and stakeholders in crating wealth, jobs and the sustainability of financially sound enterprise.
5. Disclosure and transparency:
The corporate governance framework should ensure that timely and accurate disclosure is made on all material matters regarding the corporation including the financial situation, performance, and governance of the company.
6. Responsibility of the board:
The corporate governance framework should ensure the strategic guidance of the company, the effective monitoring of management by the board
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