1.

Governance is an act of controlling a certain organization or governing something that is run by laws,
power and social system.

2. The characteristics of Good Governance are as follows:

a. Transparency. To have a good governance, transparency or openness will promote effectiveness and
efficiency in government.

b. Equity. All men and women have equal rights and opportunity to improve their well being.

c. The Law. Particularly when it comes to human rights regulations, legal structures must be unbiased
and fair.

3. The sole purpose of corporate governance is to make every corporation deliver effective management
to its long-term success.

4. The Objective of corporate governance are:

-Ensure that the administration of your firm takes into account the interests of all parties, including
those of employees, investors, suppliers, and others.

-Pay attention to your company's values when conducting business.

-Construct your business to bring about long-term prosperity and economic progress.

Maintaining investor confidence will enable you to swiftly and successfully raise funds.

CHAPTER 2 CORPORATE GOVERNANCE RESPONSIBILITIES AND ACCOUNTABILITIES

EXPECTED LEARNING OUTCOMES
1.Relationship between Shareholders/Owners and Other Stakeholders

- A shareholder is someone who has contributed money to the company by buying shares
of the concerned company. Stakeholder, on the other hand, refers to the person or group
whose interests are in some way affected by the company's decisions.

2. Parties involved in Corporate Governance, their respective Broad role & specific responsibilities

- SHAREHOLDERS. Effective monitoring may be achieved through board member elections, board
approval of significant actions like stock purchases or sales, and yearly reports on management
remuneration.

- BOARD OF DIRECTORS. In order to make sure that the organization is managed properly and in
accordance with its charter, the major representative of stockholders must be present.

-NON-EXCECUTIVE DIRECTOR. The major representative of stockholders to ensure that the

organization is run according to the organization’s charter and that there is a proper accountability.

- AUDIT COMMITTEES OF THE BOD. Ensures that the internal and external audit functions are being
overseen, as well as the process of creating yearly financial statements and public reporting on internal
control.