Role of External Parties on Corporate Governance Issues

AC 7020

MAIN BODY
Role of external parties on corporate governance issues:
Ticoz Ltd. Is an IT consultancy firm founded on 28 July 2009, registered office situated
in Brighton, East Sussex. The company has a 100$ turnover, its business listed on the stock
exchange of the country (Pillai and Al-Malkawi, 2018) . In 2017, the firm acquired a new
subsidiary firm which is known as Abrahams, It is a call centre that provides major two services
to its clients such as, it holds databases and call centre operations it allow for its clients.
According to Naciti, (2019), corporate governance is a combination of set of rules,
processes in which firm's are operated. This term concerned with internal and external factors of
any business that can affect any company's interest that can be shareholders, customers,
employees, government bodies etc.
According to Beddoes and Panther, (2018), conflicts of interest is a issue that happens
when the member of corporate is working for financial interest rather then organisation's
objective. When conflicts of interest are occur, it demolished shareholders interest as well as
customers interest towards firm. Oversight issues refers Effective rules and procedures requires
directors to oversight the firm's operations and processes. It helps directors for awareness of the
daily operations of the firm and to see in which way objectives are achieved. If oversight issues
happens in any business it leads to ineffective performance of organisation and demonstrate less
interest of stakeholders for investing in the firm.
In the view of Daiser, Ysa and Schmitt, (2017), accountability Issues, are necessary for
any organisation from top level to lower level employees. Each level should report and be
accountable to another for creating balances. One of the main factor for success of any
organisation or the cause for losses shareholders interest to continue their investment.
Transparency is must in any organisation, A firm should be transparent about its profit & losses
and must make those figures available for shareholders those invest in their company. Lack of
transparency can leads the damage between the firm's leadership and stakeholders. Stakeholders
who has to report the firm about the corporate governance are shareholders, investors and
customers. Apart from this, Compliance with laws Those firms who are really need progress and
wants to running organisation for long term they comply with law of security exchange board of
India (SEBI).
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