Corporate Governance: 4 years BBS 4th year teaching Material

2. CORPORATE GOVERNANCE
Concept:
Corporate governance is the system of
rules, practices and processes by which a
company is directed and controlled.
Corporate governance essentially involves
balancing the interests of a company's many
stakeholders, such as shareholders,
management, customers, suppliers,
financiers, government and the community.

3. Corporate Governance
Concept: Corporate governance is the process
and structure used to direct and manage the
business affairs of the company towards
enhancing business prosperity and corporate
accountability with the ultimate objective of
realizing long-term shareholder value, which
taking into the account of the interest of other
stakeholders.
Source: Report on Corporate Governance, Malaysia

4. Four Pillars of Corporate Governance
 Accountability
 Fairness
 Transparency
 Independence

5. Accountability
Corporate governance :
 Ensure that management is
accountable to the BOD.
 Ensure that the Board is
accountable to shareholders.

6. Fairness
Corporate governance :
 Protect Shareholders rights
 Treat all shareholders including
minorities(having less stock), equitably
 Provide effective redress(resolve) for
violations

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

8. Independence
Corporate governance :
 Procedures and structures are in place so as
to minimize, or avoid completely conflicts
of interest
 Independent Directors and Advisers i.e. free
from the influence of others

9. ThankYou!!!