Corporate Governance Flashcards
What is corporate governance?
The system by which companies and other entities are directed and controlled.
What is the directors main aim?
To create wealth for the shareholders of the company.
What is the duty of directors?
They have a duty of care to show reasonable competence in their management of the affairs of the company.
How should directors of companies act?
They should act honestly in what they consider to be the best interest of the company.
What is the responsibility of the directors?
To prepare financial statements.
If financial statements are audited, who does the responsibility fall upon?
Directors of the company, as well as staff.
What does an auditor provide for shareholders?
Assurance that the accounts fairly present the financial performance and position of the company.
