CORPORATE GOVERNANCE

Corporate governance

Corporate governance

Introduction

Corporate governance is meant to be the dynamic and central feature of the business that is derived from the Latin word gubernare that means “to steer” that relates to that of steering the ship. Showing that, it mainly depends on the ways of functioning rather than controlling it. There are different ways of understanding shareholders that includes accountability of the companies to the share holders and it also involves many other people and stakeholders. In this assignment a wider scope of corporate governance will be seen and the code of accountability will be discussed, the way it is held accountable for running the businesses is very important part of the organization.

The Code is about accountability

There are many rules and principles that are made in order to help the corporate governance to prove efficient results and that's why these are made but are not that rigid. It mainly consists of provisions and principles. These principles help the companies to follow these rules and the way they are held responsible for reporting to the stakeholders. These principles are the foundation of code. These are all the steps that taken to achieve ideal governance or if there are any other ways of making it successful. These codes also help in building a better relationship between the company and the stakeholders that create a position of the company. The company should be able to prove that with the help of these practices they are aiming to on contributing towards better performance and efficiently delivering the objectives of the business.

There are certain codes of principles that they are to follow but there have been controversies if the stakeholders are focusing on the accountability of the companies or effectiveness. The companies committee and it board should have a balance level of appropriate experience independence, knowledge and skills that are required for the company that would enable them to perform their particular responsibilities and duties efficiently. They should have a transparent, rigorous and formal procedure for appointing new directors for the board and that all the directors should be capable of allocating enough time towards the company in order to perform their responsibilities efficiently. The directors must have been provided with induction when joining the board and they should according refresh and update their knowledge and skills for the betterment of the company. They should be provided with day to day information of quality control in a timely manner so that they can discharge their duties according to the needs. They should be able to evaluate their own performance and also include individual directors and its committees. And they should have the chance to submit their selves for re-election during regular intervals that is subjected on the basis of continuing satisfactory performances.

The board of the company is held responsible for presenting a fair, understandable and balanced judgment of the company's prospects and position. It is also responsible for identifying the extent and natures of the major risks that the company is capable ...