The corporate governance statement must contain a description of the composition and operation of the issuer's administrative, management and supervisory bodies and their committees..
Good corporate governance ensures that an organisation's board of directors meet regularly, retain control over the business and have clearly defined responsibilities.
It also ensures a robust risk management system.
Corporate governance is one of the cornerstones of any good business..
Thus, corporate governance covers:
Financial Stakeholders (Shareholders); Boards of Directors (Checks and Balances); Control Environment (Accounting, Controls, Internal and External Audit); and.
Transparency and Disclosure..
A company's board of directors is the primary force influencing corporate governance.
Bad corporate governance can destroy a company's operations and ultimate profitability.
The basic principles of corporate governance are accountability, transparency, fairness, responsibility, and risk management..
Identify the corporate governance documents that are required for your organization Research the legal requirements in the state and country where your organization is located Consult with an attorney or qualified corporate governance specialist to ensure compliance Create an inventory of the corporate governance documents that need to be drafted .
The nominating/corporate governance committee of the board plays a leadership role in shaping the corporate governance of the company, strives to build an engaged and diverse board whose composition is appropriate in light of the company’s needs and strategy, and actively conducts succession planning for the board.
Effective corporate governance requires dedicated focus on the part of directors, the CEO and senior management to their own responsibilities and, together with the corporation’s shareholders, to the shared goal of building long-term value.
II.
Key Responsibilities of the Board of Directors and Management .
