Corporate Governance

Responsibilities and
Accountabilities
Chapter 2
RELATIONSHIP BETWEEN SHAREHOLDERS
AND OTHER STAKEHOLDERS
PARTIES INVOLVED IN CORPORATE
GOVERNANCE
1. Shareholders
➢ oversight through election of board members,
approval of major initiatives, annual reports on
management compensation
2. Board of Directors
➢ major representative of stockholders
3. Non-Executive or Independent Directors
➢ has the same role as the board of directors
PARTIES INVOLVED IN CORPORATE
GOVERNANCE
4. Management
➢ operations and accountability
5. Audit Committees of the Board of Directors
➢ oversight of the internal and external audit function
6. Regulators
a Board of Accountancy
➢ set accounting and auditing standards
b Securities and exchange Commission
➢ ensure accuracy, timeliness and fairness of public
reporting
PARTIES INVOLVED IN CORPORATE
GOVERNANCE
7. External Auditors
➢ performs audits of company financial statements
8. Internal Auditors
➢ performs audits of companies for compliance with
company policies and laws, audits to evaluate the
efficiency of operations, and periodic evaluation and
tests of controls