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Report on Important of Corporate Governance

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Added on  2020-05-28

Report on Important of Corporate Governance

   Added on 2020-05-28

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Running head: IMPORTANCE OF CORPORATE GOVERNANCEIMPORTANCE OF CORPORATE GOVERNANCEName of the StudentName of the UniversityAuthor Note
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1IMPORTANCE OF CORPORATE GOVERNANCEExecutive SummaryThis report throws light on the important of corporate governance in an organization. The role,responsibilities of board of directors and the CEO is well defined to maximize the organizationalgrowth. It is the duties of the board members of the organization to act honestly and exercisereasonable skills and care to clearly understand the fiduciary duties required to perform therequired tasks of the organization. Moreover, the report elaborates on the importance ofshareholder among all the stakeholders present in an organization. Furthermore, it is the duty ofthe board of directors to hold their shareholders interest in the organization. They are responsiblefor providing relevant information to their stakeholders and avoiding any uncertainties presentwithin the organization.
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2IMPORTANCE OF CORPORATE GOVERNANCETable of ContentsCase Study 1:...................................................................................................................................3Introduction:................................................................................................................................3Appointment of the Board of Directors:......................................................................................3Role of Board of Directors:.........................................................................................................4Duties of the board of directors:..................................................................................................4Responsibilities of the board of directors:...................................................................................5Role of the Chief Executive officer:............................................................................................6Recommendation:........................................................................................................................6Conclusion:..................................................................................................................................7Case study 2:....................................................................................................................................7Introduction:................................................................................................................................7Responsibilities of the director towards their shareholders:........................................................8Analysis:......................................................................................................................................9Recommendation:......................................................................................................................10Conclusion.................................................................................................................................11References:....................................................................................................................................12
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3IMPORTANCE OF CORPORATE GOVERNANCECase Study 1:Introduction:In the recent times, as an organization is expanding the business due to increase inglobalization and privatization. Understanding the roles and responsibilities should be the priorstep while appointing the board of directors for the organization (McCahery, Sautner and Starks2016). the board of directors should be appointed on the behalf of the shareholders forcontrolling the daily affairs of the businesses. The board members should be directly accountableto the shareholders and as well as holding the company’s annual general meeting. It is importantfor an organization to have periodicals board meetings so that the directors execute theirresponsibilities carefully to control the organization’s overall situation, strategies and policies. The board of director’s main purpose is to make sure that the organizations prosperity ismaintained by collectively controlling the organizations affairs for meeting the general interest oftheir stakeholders and shareholders (Armstrong et al. 2015). While dealing with the issues andchallenges related to the financial responsibilities of the company, the directors should also dealwith their issues of corporate governance, social responsibilities and the organizational ethics.Each and every board meeting, a chair person should be present to conduct the board meetingefficiently. Appointment of the Board of Directors:The major control related to the composition for board of directors relies with theshareholders as they have the power to appoint or dismiss a director. They have the control tofix the minimum or maximum amount of directors in the organization. The directors can be
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