PRINCIPLES OF CORPORATE GOVERNANCE

1. Shareholder recognition: Authority and duties of Shareholders

Good corporate governance seeks to make sure all shareholders [small or
majority] get a voice at general meetings and are allowed to participate. This
principle is founded on the idea that shareholders have the supreme
authority.
2. Governance structure and organization- a corporation ought to have defined
duties and responsibilities for each position in every sector. This ensures a
proper understanding of roles. The existence of this structure guarantees
sound management, corporate integrity, reputation, and responsibility.
3. Management of corporate risk and Internal control
The Board must identify key risk areas and performance indicators of the
corporation’s business and constantly seek to mitigate this risk. Regular
review of systems, processes, and procedures is necessary to ensure the
effectiveness of its internal systems of control so that its decision-making
capability and the accuracy of its reporting and financial results are
maintained at the highest level attainable.
4. Director’s duties, remuneration, and performance.
This principle reiterates the idea of having well-defined duties and
responsibilities for the director against which the shareholders can hold them
accountable. Equally, the system should also have a remuneration package
that is designed to promote the long-term success of the company and that is
directly aligned with performance.
The success of the company is dependent on the director's performance, the
Board is expected to regularly assess its performance and effectiveness and a
summary of the findings is made at the annual general meeting.
5. Reporting with Integrity
Proper corporate governance requires disclosure of decisions that are likely to
affect the value or prospects of the company. This is also intertwined with the
need for transparency of communications between the Board and the
shareholders.
6. Corporate performance, viability, and financial sustainability.
The progress of the corporation ought to be assessed regularly, this in return
aids in policy making and implementation. The Board should constantly review
the financial health of the company and its ability to operate successfully and
meet its objectives.
7. Relations with shareholders and key stakeholders
The Board should be responsible for ensuring that appropriate dialogue takes
place among the organization, its shareholders, and other key stakeholders.
 This recognition of the interests of the shareholders is its fundamental
purpose.
8. Recognition and utilization of professional skills and competencies.
Corporate governance requires that a board of directors be composed of
diverse and competent individuals. This industry-specific competencies are
identified through established nomination and selection processes. Also, the
Board may conduct regular skills assessments to ensure collective skills and
competencies align with the company’s strategic objectives.