Corporate Governance provide investors with a framework to ensure compliance with fiduciary and contractual duties to shareholders and investors. Too often governance suffers as a result of a failure of formalities and systems to ensure oversight.
- Adequate shareholder control of the corporation
- Effective monitoring of management’s performance
- Effective oversight of board’s resolutions
- Close alignment of management’s and shareholders’ interests
- Increased productivity and enhanced firm value; and
- Effective deterrence of fraud and other forms of non-compliance
Successful governance policies—encompassing the litigation, regulatory, and policy-making arenas—will make corporate directors and executives more accountable to shareholders; instill confidence among investors, retail and institutional alike, in the integrity of financial markets; and protect employees, bond-holders, and other corporate constituents from fraud and egregious corporate conduct.