CS week 9-by Daniel Mak - Corporate governance is the...

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Corporate governance is the system by which companies are directed and managed. It influences how the objectives of the company are set and achieved, how risk is monitored and assessed, and how performance is optimized. Good corporate governance enable companies to create value and provide accountability. Among others , some fundamental principles to good corporate governance are a balance of skills, experience and independence on the board appropriate to the nature and extent of company operations. Independent directors should not be employed by the company recently, or having material contractual relationship with the company such as being consultant, supplier or customer to the company. The roles of the chairperson and CEO should not be exercised by the same person. There should be integrity among those who can influence a company’s strategy and financial performance, together with responsible and ethical decision-making. Information needs of the investment community must be met for accountability and attracting capital. Good corporate governance should also ensure
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This note was uploaded on 06/21/2011 for the course ECON 101 taught by Professor Profeessor during the Spring '11 term at Aachen University of Applied Sciences.

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CS week 9-by Daniel Mak - Corporate governance is the...

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