Features of Corporate Governance
The characteristics or features of corporate governance are listed below.
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- Transparency : This way that the Board of Directors must free all relevant information to the stakeholders. They must demonstrate all the necessary fiscal as well as 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 hold upward given to a greater extent than powers as well as thus that he tin approve the companies plans as well as strategies independently.
- Accountability : The CEO as well as the Board of Directors must hold upward made accountable for their actions to the stakeholders as well as to the entire society.
- Based on Ethics : Corporate governance is based on ethics, moral principles as well as 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 yesteryear companies all over the world. It is given a legal recognition inwards many countries. All companies must purpose corporate governance voluntarily.
- Systematic : Corporate governance is real systematic. It is based on laws, procedures, practices, rules, etc. All these laws are made to increase the wealth of the shareholders as well as to protect the rights of all the stakeholders of the company.
