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  • Chapter 2 Corporate Governance

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    Josephine Ann Magno
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    This document discusses corporate governance responsibilities and accountabilities. It defines shareholders/owners and stakeholders, with shareholders having ownership in the company and stakeholders having broader interests. Shareholders delegate responsibilities to the board and management and expect accountability in areas like financial performance, transparency, and stewardship. Management is responsible for financial reporting choices and internal controls to ensure accurate disclosure. Key parties in corporate governance are identified as shareholders, the board of directors, management, auditors, and regulators, each with distinct oversight roles.

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    CHAPTER 2 CORPORATE GOVERNANCE

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    This document discusses corporate governance responsibilities and accountabilities. It defines shareholders/owners and stakeholders, with shareholders having ownership in the company and stakeholders having broader interests. Shareholders delegate responsibilities to the board and management and expect accountability in areas like financial performance, transparency, and stewardship. Management is responsible for financial reporting choices and internal controls to ensure accurate disclosure. Key parties in corporate governance are identified as shareholders, the board of directors, management, auditors, and regulators, each with distinct oversight roles.

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    © All Rights Reserved
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    6 views8 pages

    Chapter 2 Corporate Governance

    Uploaded by

    Josephine Ann Magno
    This document discusses corporate governance responsibilities and accountabilities. It defines shareholders/owners and stakeholders, with shareholders having ownership in the company and stakeholders having broader interests. Shareholders delegate responsibilities to the board and management and expect accountability in areas like financial performance, transparency, and stewardship. Management is responsible for financial reporting choices and internal controls to ensure accurate disclosure. Key parties in corporate governance are identified as shareholders, the board of directors, management, auditors, and regulators, each with distinct oversight roles.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
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    CHAPTER 2

    CORPORATE GOVERNANCE
    RESPONSIBILITIES AND ACCOUNTABILITIES
    GOOD GOVERNANCE
    Good Governance is very
    important to recognize based on
    principles underpinned by
    consensus and continually
    developing notions of good
    practices.

    There is no absolute rule which


    must be adopted by all
    organizations.
    “ There is no simple universal
    formula for good governance”
    Public Corporation

    Stakeholders

    Board of Shareholders/
    Directors Owners

    External Auditors
    Delegate Executive
    Shareholders/Owners Management
    Responsibility
    Regulators
    Operational
    Management
    Society and
    Others
    Internal Auditors
    SHAREHOLDER OR STOCKHOLDER
    Is a person who owns an Equity Stock in the company and therefore,
    holds an ownership stake in the company

    Stakeholders
    Is a broader category that refers to all parties/ persons with an
    interest in a company’s performance.
    Shareholders/Owners
    Delegate Responsibilities to how well the resources that have
    been entrusted to management and the board have been used.

    FOR EXAMPLE THE OWNERS WANT ACCOUNTABILITY


    ON SUCH THING AS:

    FINANCIAL PERFORMANCE
    FINANCIAL TRANSPARENCY
    STEWARDSHIP
    QUALITY OF INTERNAL CONTROL
    COMPOSITION OF THE BOARD OF DIRECTORS AND THE NATURE OF ITS
    ACTIVITIES
    FROM A FINANCIAL REPORTING
    PERSPECTIVE, IT IS MANAGEMENT’S
    RESPONSIBILITY TO:

    • Choose which accounting principles best portray the economic


    substance of the company.
    • Implement a system of internal control that assures completeness
    and accuracy in financial reporting
    • Ensure that the financial statement contain accurate and complete
    disclosure.
    PARTIES INVOLVED IN CORPORATE GOVERNANCE:
    THEIR RESPECTIVE BOARD ROLE AND SPECIFIC
    RESPONSIBILITIES
    • SHAREHOLDERS
    • BOARD OF DIRECTOR
    • NON-EXECUTIVE OR INDEPENDENT DIRECTORS
    • MANAGEMENT
    • AUDIT COMMITTEES OF THE BOARD OF DIRECTORS
    • Regulators (Board of Accountancy & Securities and Exchange
    Commission)
    • External Auditors
    • Internal Auditors
    MAGNO , JOSEPHINE ANN B .
    BSA 2-A

    THANKYOU!

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