Corporate Governance

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I have a assignment on open topic on (Benefit of) Corporate control, but so far I think i am heading to the wrong direction. I am not certain is the corporate control are different with corporate governance. +++++++++++++++++++++++++++++++++++++++++++++ ++ 1) What is different between corporate control and corporate governance? 2) Any suggestion for any good source of benefit of corporate control? Thanks

Best Answer

corporate governance is The relationship between all the stakeholders in a company. This includes the shareholders, directors, and management of a company, as defined by the corporate charter, bylaws, formal policy and rule of law. Whereas corporate control is the field of corporate governance Try going to answers.com they have a lot of encyclopedias that could give you the answer to #2 I just found a section on corporate governance: http://www.answers.com/topic/corporate- governance?cat=biz-fin

is there any relationship between corporate governance and internal control of the company?

Best Answer

yes there is a relationship... some aspects of corporate governance is part of the internal control policies. example for the corporate governance is that purchases above USD100,000 requires board approval which on the other hand is part of the internal control policy on purchasing.

I am writing a corprate governance guide for a bank. What are the minimum items to be covered in the document. Is there a model corporate governance document for banks

Best Answer

Well, better seek the assistance of the Central Bank in your country. I am sure, there is.

Unlike the US, other countries do not have the SOX Act that gives guidelines on corporate reporting and governance, yet they still continue with their existing systems. Are they at risk then?

Best Answer

Corporate governance is the set of processes, customs, policies, laws and institutions affecting the way a corporation is directed, administered or controlled. Corporate governance also includes the relationships among the many players involved (the stakeholders) and the goals for which the corporation is governed. The principal players are the shareholders, management and the board of directors. Other stakeholders include employees, suppliers, customers, banks and other lenders, regulators, the environment and the community at large. Corporate governance is a multi-faceted subject. An important part of corporate governance deals with accountability, fiduciary duty and mechanisms of auditing and control. In this sense, corporate governance players should comply with codes to the overall good of all constituents. Another important focus is economic efficiency, both within the corporation (such as the best practice guidelines) as well as externally (national institutional frameworks). In this "economic view", the corporate governance system should be designed in such a way as to optimize results. Some argue that the firm should act not only in the interest of shareholders, but also of all the other stakeholders. Recently there has been considerable interest in the corporate governance practices of modern corporations, particularly since the high-profile collapses of firms such as Enron Corporation. After Enron - the US brought Sarbenes Oxley Act which reduced the loopholes allowing companies to flout corporate governance. THE key think is not to have a vast phalanax of regulations to hamstring people to follow corp governance. So yes, human nature needs to evolve such that greed is extinguished so as to be tempered by what is right. Also corp govn regulations need to make fraud a heavy cost to dissuade people from getting into fraud... Important sources for corporate govn guidelines: cadbury report.

Recently there are many organizations fall such as Enron, WorldCom, and so on. Are they failure due to corporate governance? Or could it be any other reasons? Is corporate governance relevant to business fall?

Best Answer

If a company has good corporate governance, that means they have a plan in place should a company fail. Understand that corporations always fail but it's the plan they have that gets them out of their jam and continues on. Look at Disney, they have good corporate governance. With the changes in CEO in the last decade or so, the corporation never skipped a beat.