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Corporate Governance and Ethics Assignment

   

Added on  2020-04-07

18 Pages4345 Words173 Views
Running head: CORPORATE GOVERNANCE AND ETHICSCorporate Governance and EthicsName of the StudentName of the UniversityAuthor Note

1CORPORATE GOVERNNACE AND ETHICSIntroduction on Corporate Governance Corporate Governance are those rules or laws or procedures which is used bythe corporate inside the office so that they are able to maintain a good culture withinthe organization which enables the organization to meet the criteria of high standardsand thus the company sets various goals so that the criteria can be achieved. It fulfilsthe aim of the organization to build and to maintain a good relationship so that itcreates a bond which helps to maintain the stakeholder relationship and make itstronger. The member of the organization includes the directors and officials such as thechartered secretary which helps to improve the standards of the organization. If thecorporate governance is strictly followed or adhered then it ensures growth of theorganization and also enables the organization to be sustainable and helps to maintainthe standard and is an integral nature of the organization. How does Corporate Governance play a important role in the organizationThe directors of the company- they play a vital role in regard to anyorganization and they play a role which is very important for the organization. Theyensure the growth for the organization and they also see that the organization makesdevelopment so that the company’s rises in the upward direction. The directors of anorganization are the decision makers of the organization and help in the success of theorganization (Baumann-Pauly, 2013). The shareholders of the company- The share holders are an integral part ofthe organization and they play a critical role in the success of the organization. Theyare the people who support the company in number of ways. The most important

2CORPORATE GOVERNNACE AND ETHICSsupport that the shareholders provide is the support with the capital of theorganization. The capital is the most important factor for any organization so it can besaid that the share holders are the people who are very important for the organizationfrom each and every way. Stakeholders of the company- The stake holders are the people who aredirectly or indirectly related with the organization. The stake holders can have directrelation as well as they may also have in-direct relation with the organizationdepending upon there function with the organization. Different kinds of stake holderssuch as the people who are working within the organization, there are suppliers whosupplies different commodities for the organization. The stakeholders help infunctioning of the organization in different ways and help the companies to grow.(Cappelli, Moore and Trzeciak ,2012).A.Comparison between the Resolution of 2016 Concerning CorporateDiscipline and Governance Standards of Public Joint Stock Companies inUAE, and International codes of cooperate governance UKThe Corporate Governance Code in UAE has set high standard, which providefor the plan which helps the company to comply with the requirement of the code.The listed company shall comply with the requirement of Corporate GovernanceCode and it sets out the actions to rectify any non-compliance.The main provisions of UAE Code are as follows: There shall be at least one third directors representing independent directorswith a majority of non executive directors. There is either a Chairman or aManaging director.The meeting of the Board of director shall be held once in the two months

3CORPORATE GOVERNNACE AND ETHICSAn audit committee, nomination and remuneration committee is formed whichis not less than three non executive directors one of whom shall beindependent. Out of the members one member shall be the expert in financialaffairs (Crane and Matten, 2016).There shall be compliance officerThe listed company shall submit a report on corporate governance whichincludes the information and the details on the internal corporate governancesystem and it conveys any violations committed during the financial year .Thedetails of remuneration of the seniors are also mentioned.The listed company which is listed on the UAE shall notify the SCA and themanagement regarding the development that affects the price. The board of directors shall be announcing the confidential informationprovided there is no trading done by the directors of the company as perinsider trading norms. The listed company shall notify to SCA theshareholding pattern if it is more than 5 per cent of the company’s securities(Council, 2012).The main provisions of UK Code are as follows: The UK Code for Corporate Governance has set out good practices relating tothe board leadership and also the effectiveness or the remuneration of theshareholders.All the companies listed under the UK Act need to apply the code for listingregulation. The Code contains principles and provisions required in to be reported inthe annual report and are applied in the code. The shareholders read it from the annualreport which increases their trust on the company.

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