Corporate Governance Definition

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Definition of Corporate Governance
The corporate governance is the set of rules, principles and procedures governing the structure and functioning of the governing bodies of a company. In particular, establishes the relationships between the board , the board of directors , shareholders and other stakeholders, and stipulates the rules by which the decision - making process on the company for value creation is governed.
In recent years, specifically following the onset of the financial crisis, the international community has understood the importance of the listed companies are managed properly and transparently. The good corporate governance is the basis for the functioning of markets, as it increases credibility, stability and helps to boost
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A good and healthy governance structure will create the necessary conditions for strategic decision making that will act as a lever for increasing competitiveness and generating value, thus enhancing the company's attractiveness in the markets.
Similarly, it will have the figure of an officer compliance to keep a control over the level of compliance of the organization in line with the main recommendations of international markets and the latest trends in the field.
Lastly, best practices in corporate governance point out that in addition to meeting the interests of shareholders, maintaining a permanent and effective dialogue and encouraging their active participation in the decisions of the company, good corporate governance has to respond to the expectations of the rest Of interest groups, such as customers, suppliers and employees, among others.
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Principles of Corporate Governance of the
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There is no single model of corporate governance. However, the work done in the countries of the OECD and non-members, countries and even within the Organization, has served to identify some common elements that underlie good corporate governance.
Principles of Corporate Governance of the OECD
I. Ensuring the basis for an effective Framework for Corporate Governance
The corporate governance framework should promote transparent and efficient markets, be consistent with the rule of law and clearly articulate the division of responsibilities between the various supervisory authorities , Regulatory and executive.
II. The Rights of Shareholders and Key Functions in the field of property
The corporate governance framework should protect and facilitate the exercise of shareholder rights.
III. Equitable Treatment of Shareholders
The corporate governance framework should ensure equal treatment to all shareholders, including minority and foreign shareholders . All shareholders should have the opportunity to appeal effectively in case of violation of their
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