CORPORATE

GOVERNANCE
(PGP GROUP 8)
 CORPORATE
Corporates are owned by their stockholders
(shareholders) who share in profits and losses
generated through the firm's operations, and
have three distinct characteristics (1) Legal
existence: a firm can (like a person) buy, sell,
own, enter into a contract, and sue other
persons and firms, and be sued by them.
 GOVERNANCE
The way organizations or countries are managed and
controlled at the highest level.
Corporate

Governance
CORPORATE GOVERNANCE

Corporate governance involves a set of

relationships between a company’s
{ management, its board, its shareholders and
other stakeholders ..also the structure through
which objectives of the company are set, and
the means of achieving those objectives and
monitoring performance are determined.
Elements of Corporate Governance

1. Good Board practices.

2. Control Environment.

3. Transparent Disclosure.

4. Well-defined shareholder rights.

5. Board Commitment.
Four Principals of Corporate Governance

1. Accountability.

2. Fairness.

3. Transparency.

4. Independence.
 Why Corporate Governance?
1. Better access to external
finance.
2. Lower costs of capital –
interest rates on loans.
3. Improved company
performance –
sustainability.
4. Higher firm valuation and
share performance.
5. Reduced risk of corporate
crisis and scandals.
6. Promote the efficient use of
scarce resources
7. Promote the trust of investors
8. Good corporate governance has a
positive link to economic
development and good corporate
performance
9. Funds will flow to entities which
are seen to have internationally
accepted standards of corporate
governance
Conclusion
Successful corporate
governance can be achieved by
adopting a set of principles that
depends upon, honesty, justice
and the manner in which
companies conduct their
affairs. The virtue ethics of
justice and honesty are all
important in today’s business
due to the challenges
organizations face with
growing globalization.
 Corporate Governance
Corporate Governance is a dynamic
process and is continually evolving

AND

It has no boundaries or limits!