1MIDLANDS STATE UNIVERSITYFACULTY OF COMMERCEDEPARTMENT OF ACCOUNTINGMODULE:MACC 704LECTURER:MRS E MASHIRIPROGRAMME:MCOM- HARAREMODE OF ENTRY:PART TIMEGROUP MEMBERSSURNAME AND NAMESTUDENT NUMBERMATSVAI JOEL:R174594WCHAUKE JACKSON:R133746RBANDA CHAKUCHANE:R174193TMUGONA MAXWELL:R134815TSHONHIWA STANFORD:R174596NNGWARATI YEUKAI:R172860HNYANYIWA DAISON:R173578XCHIREWA COSMORE C:R123359MPETTNESS FURUSA:R13535CGROUP 1 PRESENTATION:PART 4
2Why Corporate GovernanceA company is supposed to have objectives and these are the reason for its existence, may beset out in its written constitution which is the Memorandum and Articles of Association.Although a company exists as a legal person, in general the organisation is a coalition of manydifferent individuals. It is controlled by a Board of Directors in the interest of its owners whoare the Shareholders. The interest of the Board and those of shareholders always coincide. Theissue of corporate governance is that there should be a way that the interest of shareholders,directors and other groups are appropriately satisfied.Because corporate governance is important, the separation of management and ownership iscommon in large corporates than the small ones. Those big corporates raise capital in themarket, and the institutional investors hold huge amounts of shares and other investments, itfollows that the investors expect their investment to be safe. Then the issue of good corporategovernance is important because it supports capital markets, improves the credibility of thecompany and it is a sign of protection of the investments made to the company. (Coyle 2004)COMPANY BOARD AND CORPORATE MANAGEMENTCompany BoardThese are individuals who are elected to act as representatives of shareholders to institutecorporate management policies and to effect company decisions on major issues affecting thecompany. Public companies are required to have a board of directors though this also appliesto some private and non-profit making organisations.These are members from the company and outside the organisation mandated to make decisionsfor implementation. They are responsible to direct, govern, manage and stir the company.(Coyle 2004).Corporate ManagementCorporate management is the process of directing, administrating and leading a company. Thetasks and business activities often practiced in corporate management may include strategicplanning, managing resources and using them in achieving the company's objectives.()The Board gives direction in terms of what the company should do in the short and long run.The CEO and other executives implement these plans, for example;plan to diversify, theBoard formulates the strategic plan then the CEO will make sure that it is implemented withingiven time lines in congruence with company and prioritising shareholders and stakeholdersexpectations.