Principles of corporate governance, Financial Management

Principles of corporate governance

Every corporation should be headed by a proficient BOD which should exercise leadership, venture, honesty and judgments in directing the corporation so as to attain continuing prosperity and to proceed in the best interest of the enterprise in a manner depend on accountability, clearness, and responsibility.

Appointments to the BOD:
It must be through a well organized and effective procedure to make sure that a balanced mix of proficient individuals is made and that each director selected is able to add value and bring independent judgment on the decision making procedure.

Strategy and Values:
The BOD must establish the purpose and values of the corporation, establish strategy to attain that purpose and implement its values in order to make sure that the corporation survives and thrives and that processes and values that protect the assets and status of the corporation are set in place.

Structure and organization:

The BOD must make sure that a proper management structure is in place and make sure that the structure functions to sustain corporate integrity, status and responsibility.

Corporate Performance, Viability & Financial Sustainability:
The BOD must check and compute the implementation of strategies, policies and management performance criterion and the plans of the organization. Additionally, the BOD must constantly revise the viability and financial sustainability of the enterprise and should do so at least once in a year.

Posted Date: 12/8/2012 7:05:52 AM | Location : United States

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