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Corporate Governance: A Way of Interac

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Added on  2021-02-20

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Corporate Governance INTRODUCTION 1 MAIN BODY1 CONCLUSION 5 REFERENCES 6 INTRODUCTION Corporate governance is a structure and system of rules, practices and processes by which an entity is directedandcontrolled.An organization is required to follow corporate governance because it balance the interests of the different stakeholders having capability to create an influence on the working of the company (Tricker & Tricker, 2015). Corporate governance also provides the structure through which the objectives of the company are set, and the means of attaining those

Corporate Governance: A Way of Interac

   Added on 2021-02-20

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Corporate Governance
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Table of ContentsINTRODUCTION...........................................................................................................................1MAIN BODY...................................................................................................................................1CONCLUSION................................................................................................................................5REFERENCES................................................................................................................................6
Corporate Governance: A Way of Interac_2
INTRODUCTIONCorporate governance is a structure and system of rules, practices and processes by whichan entity is directed and controlled. An organization is required to follow corporate governancebecause it balance the interests of the different stakeholders having capability to create aninfluence on the working of the company (Tricker & Tricker, (2015). It is way of interacting withthe outside world in which the complete responsibility is given on the Board of Directors. Thisreport has been presented on the corporate governance duality issues by focusing on positive andnegative impact of it on various entities who have followed it. In addition to this, legislation,rules, standards or guiding principles which are relevant have also been covered in this. Also, acritical review of appropriate concepts, principles, tools and techniques regarding the concept ofduality are added. MAIN BODYOECD has defined “Corporate Governance involved a set of relationships between acompany's management, its board, its shareholders and other stakeholders. Corporate governancealso provides the structure through which the objectives of the company are set, and the means ofattaining those objectives and monitoring performance are determined.” It is a wide conceptwhich has designed certain principles and rules applicable on the organizations (Definition ofCorporate governance, 2019). There is no compulsion to follow corporate governance but bycomplying with this, an entity can carry in an organized way by abiding by all the legislations. Ithelps in creating a competitive advantage by which it can sustain for a long term. Also, entitiestake accountability and maintain transparency in their work. Corporate governance emphasizeson increased disclosure of documents and information to keep the trust of the stakeholders on thecompanies in which they have invested their funds. Corporate governance has gone through reforms by which new concepts are added afterconsidering the requirements for amendments. As a result of making updates, a concept of“duality” has been included. Duality refers to assigning the roles, rights and responsibilities ofChairman of the Board (COB) and Chief Executive Officer (CEO) to a single person. In otherwords, a single individual acts as COB and CEO at the same time. The persons holding these twopositions have entirely different roles and responsibilities. Since, these two positions are of thetop management, they should be held by the personalities having required qualifications along1
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