What is CG? Explain the need for CG?
INTRODUCTION
Corporate goverance is a system by which companies are directed and controlled by the management in the best intrest of shareholders,stakeholders,investor and others .The BOD of the company is responsible for CG by ensuring transperancy in business operations and accountabality on their protect the intrest of the stakeholders.
DEFINITION
Milton Friedman defines CG as a conduct of business in accordance with shareholders desires which generally is to make as much money as possible while conforming to the basic rules of the society embadied by the law and local customs.
The BOD is responsible for the goverance of their companies.The shareholders role in goverance is to appoint their directors and auditors.
The CG structure specifies the distribution of rights and responsibilites among different participants in the corporaten such as the board managers,shareholders and other stakeholders and spell out rules and procedures for making decisions on cororate affairs.
Good CG is an important step in bulding market confidence and encouraging stable ,long term international investment flow.
INTRODUCTION
Corporate goverance is a system by which companies are directed and controlled by the management in the best intrest of shareholders,stakeholders,investor and others .The BOD of the company is responsible for CG by ensuring transperancy in business operations and accountabality on their protect the intrest of the stakeholders.
DEFINITION
Milton Friedman defines CG as a conduct of business in accordance with shareholders desires which generally is to make as much money as possible while conforming to the basic rules of the society embadied by the law and local customs.
The BOD is responsible for the goverance of their companies.The shareholders role in goverance is to appoint their directors and auditors.
The CG structure specifies the distribution of rights and responsibilites among different participants in the corporaten such as the board managers,shareholders and other stakeholders and spell out rules and procedures for making decisions on cororate affairs.
Good CG is an important step in bulding market confidence and encouraging stable ,long term international investment flow.