Features of Corporate Governance
The characteristics or features of corporate governance are listed below.
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- Transparency : This agency that the Board of Directors must liberate all relevant information to the stakeholders. They must present all the necessary fiscal in addition to operational information to the stakeholders. They must non shroud whatever of import information or keep whatever secrecy.
- Protection of Shareholders' Rights : The Board of Directors must protect the rights of the stakeholders. They must protect all the stakeholders, peculiarly the minority stakeholders.
- More Powers to CEO : The CEO must live on given to a greater extent than powers then that he tin approve the companies plans in addition to strategies independently.
- Accountability : The CEO in addition to the Board of Directors must live on made accountable for their actions to the stakeholders in addition to to the entire society.
- Based on Ethics : Corporate governance is based on ethics, moral principles in addition to values. So, the Board of directors must avoid unfair practices, cheating, exploitation, etc.
- Universal Application : Corporate governance has universal application. That is, it is used past times companies all over the world. It is given a legal recognition inward many countries. All companies must role corporate governance voluntarily.
- Systematic : Corporate governance is real systematic. It is based on laws, procedures, practices, rules, etc. All these laws are made to growth the wealth of the shareholders in addition to to protect the rights of all the stakeholders of the company.
