The framework of rules and practices by which a board of directors ensures accountability, fairness, and transparency in a company's relationship with its all stakeholders (financiers, customers, management, employees, government, and the community). The corporate governance framework consists of (1) explicit and implicit contracts between the company and the stakeholders for distribution of responsibilities, rights, and rewards, (2) procedures for reconciling the sometimes conflicting interests of stakeholders in accordance with their duties, privileges, and roles, and (3) procedures for proper supervision, control, and information-flows to serve as a system of checks-and-balances.

2. What
is

4. 4
Pillars of
Corporate GovernanceAccountability
Fairness
Transparency
Responsibility

5. Accountability
.
•Ensure that management is accountable to the
Board.
.
•Ensure that the Board is accountable to
shareholders.

6. Fairness
•Protect Shareholders Rights.
•Treat all shareholders including minorities,
equitably.
•Provide effective redress for violations.

7. Transparency
•Ensure timely, accurate disclosure on all
material matters, including the financial
situation, performance, ownership and
corporate governance.

8. Responsibility
.
•Procedures and structures are in place so as to
minimise, or avoid completely conflicts of interest.
.
•Independent Directors and Advisers i.e. free from
the influence of others.

9. Insuring the basis of an effective Corporate Governance.
The Rights of Shareholder and keep ownership function.
Equitable Treatment of Shareholders
The Role of Stakeholders in Corporate Governance
Disclosure and Transparency
The Responsibility of the Board.

11. Improved
Reputation
Fewer
Fines,
Penalties,
Lawsuits
Decreased
Conflicts
and Fraud.

12. Ownership
–
Management
Separation
Illegal Insider
Trading
Misleading
Financial
Statement