Corporate Governance is the set of processes,
customs, policies and laws by which an organisation is directed, administered and controlled.
Corporate governance also includes the relationships among the many stakeholders involved and the
goals for which an organisation is governed. The principal stakeholders are the shareholders,
management, and the board of directors. Other stakeholders include employees, customers, creditors, i.e. banks, insurers, suppliers,
regulators, and the community at large.
Corporate
governance aims to protect shareholder rights, enhance disclosure and
transparency, facilitate effective functioning of the board and provide an
efficient legal and regulatory enforcement framework through a mix of company law, stock exchange
listing rules and self-regulatory codes.
Accosec’s
role is to ensure a company maintains a proper corporate governance environment and follows the
generic corporate governance principles, which are:
Responsibility - of directors
who approve the strategic direction of the organisation within a framework of
prudent controls and who employ, monitor and reward management.
Accountability - of the board
to shareholders who have the right to receive information on the financial
stewardship of their investment and exercise power to reward or remove the
directors entrusted to run the company.
Transparency - of clear
information with which meaningful analysis of a company and its actions can be
made. The disclosure of financial and operational information and internal
processes of management oversight and control enable outsiders to understand
the organisation.
Fairness - that all
shareholders are treated equally and have the opportunity for redress for
violation of their rights.
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