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Corporate Governance and Ethics | Assignment

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Added on  2020-04-01

Corporate Governance and Ethics | Assignment

   Added on 2020-04-01

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Running head: CORPORATE GOVERNANCE AND ETHICSCorporate Governance and EthicsName of the StudentName of the UniversityAuthor Note
Corporate Governance and Ethics | Assignment_1
1CORPORATE GOVERNANCE AND ETHICSOverriding responsibility of the boards of publicly-listed companies is to createshareholder value and that all other board governance responsibilities are secondary to thegoal of maximizing shareholder valueThe responsibilities of the directors of the public listed companies are as follows:The directors and the company secretaries have been assigned a huge responsibility in theCompany under the Corporation Act .The functions are:Obligations to the director for keeping record of the financials and passing of thesolvency resolutionsAll he listed Companies are required to lodge and present the annual statements with theASIC and they must constantly keep the record for the changes to the company The liabilities and the restriction imposed on the director of the company. Usually theBoard of the listed company is entrusted with a huge responsibility. They are as follows:They provide the company for the leadership and creating strategic objectives of thecompanyThey help in appointing the Managing Director and to chair the ‘senior independentdirector’ of the companyThe directors help in the appointment of the CEO of the company and also theappointment and replacement (Armstrong et al, 2015)The director helps in the appointment and also the replacement of the senior executiveand this is done through passing of the resolution in various meetings of the companyThey oversee the company strategic objectives as well as manage the operating
Corporate Governance and Ethics | Assignment_2
2CORPORATE GOVERNANCE AND ETHICSThe directors check that the that the entity complies with the accounting and the reportingsystem and also sees that the company complies with the regulation of the ActThe need to ensure that the incentives for executive directors and other senior executivesencourage them to pursue the growth and success of the entity without taking undue risksThe director ensures that there is a functioning on the reporting system.The director of the company ensures that there is satisfactory control of the company'sand Group's compliance with laws and other regulations that apply to the operations.In approving a formal work plan and instruction to the CEO annually the directors play avital role (Davis and Chu,2015).In approving the financial reporting and the form of interim reports and the year-endreports and annual accounts and publish it in the newspaperIn reality the listed companies has to keep the shareholders value since they are vital for thegrowth and sustainability of the company. Many companies have introduced stock option as amajor component of executive compensation. The idea of the directors and the management wasto align the interest of the management with those of the shareholders. To start the vestingperiods, combined with a belief that short-term earnings fuel stock prices, encouraged executivesto manage earnings, exercise their options early, and cash out opportunistically (Dimopoulos andWagner, 2016). The governance and the features of the listed companies help in the transparency andawareness of the company and the management. Corporate governance is a very important factorfor the public listed company. Many responsibilities of the management is upon the shareholdersof company. With the norms are regulated and there is globalization and privatization of the
Corporate Governance and Ethics | Assignment_3

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