Corporate Governance

• What is the concept of corporate governance primarily about?

  How businesses are run, directed, and controlled
• Why is corporate governance important for companies?

  Due to the divorce between ownership and control
• Who controls companies in corporate governance?

  The board of directors and senior management
• What does the term "divorce between ownership and control" refer to?

  Shareholders may not be involved in daily operations
• What is a key duty of the board of directors?

  To act in the interests of shareholders
• What is the responsibility of the board of directors regarding corporate governance?

  To ensure effective governance processes are in place
• Who appoints the board of directors?

  The shareholders of the company
• What are the key responsibilities of directors in corporate governance?

  Setting direction, objectives, and strategies
• How do directors provide leadership in corporate governance?

  By making strategies effective and supervising management
• What must directors report to shareholders?

  Financial position and business performance
• What is meant by "best practice" in corporate governance?

  Rules and regulations for public companies
• What is a key aspect of best practice for corporate governance?

  Splitting the roles of CEO and chairman
• Why are non-executive directors important in corporate governance?

  They represent shareholders and are independent
• What are the main components of corporate governance?

  • How businesses are run and controlled
  • The role of the board of directors
  • The relationship between ownership and control
  • Responsibilities of directors to shareholders
• What processes ensure effective corporate governance?

  • Appointment of directors by shareholders
  • Setting business direction and objectives
  • Supervising management and reporting to shareholders
  • Compliance with best practice rules and regulations