Importance of Corporate Governance in Business Organizations

Corporate Governance

EXECUTIVE SUMMERY
Every business entity requires an effective policy to maintain their position in market.
Strategies which help them to build trust and pastier market image in market. To fulfil objective
of social responsibility, mangers need to use corporate governance policies. This defines the
systematic way of formulating plans without violating any rules. This report is define the
importance of corporate fiancé by giving relevant information regarding ethical concept o
selecting, director. Their roles, criteria, responsibility, and function of auditor committee. It
defines all the essential information about ABC international Ltd, their working policy, criteria
of selecting auditor, working process and responsibilities of audit committee. This report is
prepared to solve the issue of Mr. Y.K Chan. For this purpose ABC International Ltd has been
taken. The organization is situated in Hong Kong and run business of manufacturing and selling
electronic and telecommunication part in target market area. This report help in identifying the
importance of every element of corporate governance which is essential for business
organization to provides guideline. This contain all the relevant detail regarding working of
independent director and ethical way. It is require for every individual to work in an organization
in legal and ethical manner to maintain positive environment within the organization. To spread
target market he organization is become partner of joint venture of Australian group. There will
many shareholders invested in this corporation in which Gold bard and Transect were major
shareholders This also considered the value shareholders and requirement of corporate
governance policy to protect inter of shareholder and enhance growth of the organization.

Contents
EXECUTIVE SUMMERY..............................................................................................................2
INTRODUCTION...........................................................................................................................3
CASE STUDY.................................................................................................................................4
Duties, rights and competencies of director ................................................................................4
Committee work ..........................................................................................................................5
Board structure of company.........................................................................................................7
Transparency and accountability_...............................................................................................8
CONCLUSION................................................................................................................................9
REFRENCES.................................................................................................................................10

INTRODUCTION
Corporate governance is effective policy in which manager set rules on the basis of
compliance and fulfilment of social responsibility. In every organization directors are the
personal that represent shareholders perception as they appointed by them.. There will many
shareholders invested in this corporation in which Gold bard and Transelec were major
shareholders. This report has been defined all the relevant criteria responsibility, duty of
independent director. Relation of independent director as an auditor with other parties and how
audits committee work in systematic way. It also consider importance of corporate governance
regarding running business organization in effective way by providing solution of Mr. Y.K Chan
problem to take decision regarding appoint as independent director of ABC Ltd.
CASE STUDY
Duties, rights and competencies of director
Director is a person who belongs from senior position in company. Someone who has the right to
conduct corporation and take decision according to their own way. Every organization has been
set rules and provide essential information regarding appointment, remuneration, rights and
duties of director.
Mr. Y.K Chan wants to serve as an independent director in ABC international limited Bing as an
independent director they need to serve following responsibilities towards the organization
Being as an independent director, Mr. Y.K Chan need to give advice and suggestion without
taking any partiality decision regarding their financial statement. Mr. Y.K Chan need to attend
meeting and take participation in committees which is build for better growth of organization.
As an independent director Mr. Y.K Chan has duties to solve unethical and not solving issue of
corporation. They need to take fair judgement provides affair value of the financial position of
company in directors meeting.
Being as independent director they are confidential regarding information of the organization.