Corporate governance refers to the rules, structures, customs and procedures that govern the way that people direct, manage and supervise a company. This means developing a long-term vision of business, documenting the processes that support it, and evaluating the performance regularly. Corporate governance should be based on the principles of accountability and transparency.
This requires that a company disclose all pertinent information including financial results, meeting outcomes and minutes, any changes to normal operations including resignations and replacements of the most important board members and management. This fosters honesty, trust and willingness to share both good and negative information with staff, shareholders and vendors, as well as the community and other stakeholders.
The primary function of a company’s board is to establish the system of checks and balances that ensures shareholders are treated with respect and that the decisions of management are sound. This also involves ensuring the effectiveness of internal controls to ensure compliance with laws and regulations.
In the world, a variety of models of corporate governance are in use. The most popular is the Anglo American model that prioritizes the interests of shareholders in the decision-making process and management. This model is widely used by multinational companies across the world but other governance models are also available. Although they differ, all share some commonalities and share the same fundamental principles.
www.boardroomdirect.blog/board-governance-software-products-in-2022
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