Responsibility
The Board of Directors of the company is responsible for any action in the company. The act provides them the responsibility to act in good faith for the company and its stakeholders. They have to accept this and act in a manner that is fruitful for the company. They are responsible for having a check over all the senior employees and the management of the company. They need to make sure that every person in the company is working towards only one goal that is in the best interest of the company.
Corporate Governance: Principles and Legal Aspect
Corporate Governance consists of two words “Corporate” and “Governance”. The general meaning of governance can be understood as the act of the company that is used to cater to the actions and affairs of the company. In short, Corporate Governance is a set of rules that is used to govern the actions of the company. It ensures that the work of the company is running smoothly, the company achieves its objectives, and provides benefits to its shareholders, employees, and workers. It also ensures that in the long run, the company caters to the needs of society with the help of certain activities without hampering their employees.
Geeky Takeaways:
- A good Corporate Governance of a company ensures that the company is reaching various heights and earning profit in business without hampering society or their employees.
- It creates a sense of confidence in investors’ minds and helps the company generate enough capital for their company.
- It also helps the investors, stakeholders, and all the involved companies in the company to get an idea of whether the company is heading and what is the future of the company.
- It encourages the stakeholders of the company to only engage in the best practices for the company.
Table of Content
- What is Corporate Governance?
- Principles of Corporate Governance
- 1. Transparency
- 2. Accountability
- 3. Responsibility
- 4. Risk Management
- 5. Impartiality
- Legal Aspects under Corporate Governance
- Conclusion
- Corporate Governance- FAQs