Corporate Governance

Question 1

What is Corporate Governance?

Answer 1

Set of rules governing the way directors interact both with each other in the effective management of the company and with shareholders (stakeholders) in accounting for the their stewardship of the company

Question 2

What are Corporate Governance Issues?

Answer 2

• Directors remuneration excessive or insufficiently linked to performance
• Directors not acting in best interests of company
• Directors being unaccountable to shareholders
• Company boards being dominated by a single individual (dual role of Chairman and CEO)
• Non-executive directors lacking genuine independence
• Small shareholders being effectively powerless
• Large shareholders receiving preferential treatment