Principles of corporate governance, Financial Management

Principles of corporate governance

Leadership:
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







Related Discussions:- Principles of corporate governance, Assignment Help, Ask Question on Principles of corporate governance, Get Answer, Expert's Help, Principles of corporate governance Discussions

Write discussion on Principles of corporate governance
Your posts are moderated
Related Questions
Control ratios: Three important ratios are usually used by the management to find out whether the variations from budgeted results are unfavorable or favorable.  These ratios are

Assume that ABC is considering opening an ice cream shop in Amsterdam. The shop will cost 1.8 million Euros, and the present value of the expected cash flows from the store is 1.4

Normally, floater coupon rate moves in the same direction as the reference rate. That is, with an increase in the reference rate, the floater coupon rate also increases

Why would an analyst use the Modified Du Pont system to calculate ROE when ROE may be calculated more simply? Explain. In fact, an analyst would not use the Modified Du Pont equ

Benefits of Issue of Securities Initial Public Offering (IPO) of securities gives instant recognition and visibility to the firm, helps to attract and retain skilled personnel,

Settlement of the Index Options Contract In the index options contract, the premium to be paid or to be received is calculated for each CM after netting the positions at the en

#quA stock has a current dividend of $0.32 with a growth rate of 8% annually. Assuming a 10% annual discount rate, what should the price of the stock be one year from today? Answer

It is a long-term call option to purchase common stock at a specified price.

Why does money have time value? Positive interest rates point toward that money has time value.  When one person lets one more borrow money, the first person needs compensation

What is trustworthy collateral from the lenders' perspective?  Explain whether accounts receivable and inventory are trustworthy collateral. Assets which are readily marketable