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8/12/2019 Explain Corporate Governance, The Five Key
Elements
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Explain corporate governance, the fivekey elements
Corporate governance:Corporate governance is the system by which
companies are directed andcontrolled. Boards of directors are
responsible for the governance of theircompanies. The shareholders
role in governance is to appoint the directorsand the auditors and
to satisfy themselves that an appropriate governancestructure is in
place. The responsibilities of the board include setting the
companys strategic aims, providing the leadership to put them
into effect,supervising the management of the business and
reporting to shareholderson their stewardship. The boards actions
are subject to laws, regulations andthe shareholders in general
meeting.
_UK Corporate Governance Code (the Code) was produced in 19
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8/12/2019 Explain Corporate Governance, The Five Key
Elements
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Focuses on three key elements for Family-hold business CG:o
Direction refers to all the decisions that relate to setting the
overall strategic
direction of the company.o Control refers to all the actions
necessary to oversee the managements
performance and follow up on the implementation of the strategic
decisions.o Relationship among the main governing bodies of the
firm refers to the
interactions among the shareholders, the directors of the board,
and themanagers.
Explain corporate governance, the fivekey elements
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8/12/2019 Explain Corporate Governance, The Five Key
Elements
3/10
5 key elements :1. Good board practices2. Control processes
(environment)
3. Disclosure and transparency4. Shareowner rights5. Board
Commitment
Explain corporate governance, the fivekey elements
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8/12/2019 Explain Corporate Governance, The Five Key
Elements
4/10
Outline the benefits of CorporateGovernance to address
misconceptionsand inaccuracies regarding
Companys interests Separation of control fromownership
Compliance Protecting investors interests
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8/12/2019 Explain Corporate Governance, The Five Key
Elements
5/10
Good corporate governance practices instill in companies the
essentialvision, processes, and structures to make decisions that
ensure longer-term sustainability. More than ever, we need
companies that can beprofitable as well as achieving environmental,
social, andeconomicvalue for society.
(Rachel Kyte, Vice president, business advisory services,
IFC)
-governed companies and better societies,with examples relevant
to your companyand country
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8/12/2019 Explain Corporate Governance, The Five Key
Elements
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Poverty reduction Strong growth, better
environment, increase
productivityPay tax
Better healcare,
Education,
Demonstrate the link between well-governed companies and better
societies,with examples relevant to your companyand country
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8/12/2019 Explain Corporate Governance, The Five Key
Elements
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Solve unemployment problems,increase labors income and
improvetheir quality life .
Expand business need
more laborCreate job, increase
GDP, increase general
standard living.
emons ra e e n e ween we -governed companies and better
societies,with examples relevant to your companyand country
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8/12/2019 Explain Corporate Governance, The Five Key
Elements
8/10
Business growth anddevelopment are keydeterminants of high and
stablegrowth of the economy.
Business growth createsgig volume of goods and
services better quality
,alternated import goods
export growth,
emons ra e e n e ween we -governed companies and better
societies,with examples relevant to your companyand country
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8/12/2019 Explain Corporate Governance, The Five Key
Elements
9/10
Growth in business impacts greatly tosolve social issues .
Commodities products
and services increase
diverse categories of
goods, more quality.
basic need, increase
Standard living,
emons ra e e n e ween we -governed companies and better
societies,with examples relevant to your companyand country
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8/12/2019 Explain Corporate Governance, The Five Key
Elements
10/10
Note the challenges developing andemerging market countries
confront inachieving progress, specifically:
Close -knit business communities Family-held companies Low
concentrations of ownership andcross ownership
Ineffective judicial system.
