Corporate governance is described as “the system of rules, practices and processes by which a company is directed and controlled.”
In simpler terms, it describes the set of relationships that exist between the shareholders, directors and management of a company and the structures, rules and protocols in place to determine the direction and performance of the organisation.
Effective corporate governance is critical to the success of all organisations. It makes clear the “Rules of Engagement” that will apply and it answers questions such as:
- What decisions are delegated to the CEO?
- How will the Board monitor the performance of the organisation?
- What is the process for communicating and engaging with shareholders?
- What are shareholders’ expectations of the Board?
- How will the Board assess its own performance and the performance of the CEO?
There is no single model of corporate governance and the challenge is to determine the governance framework that it is effective and appropriate for the type of organisation that is being governed. As the organisation evolves, then so too must the governance framework.
Board Business provides expert consulting services in corporate governance review, education and advice.
We can assist organisations to:
- Be aware of the implications of contemporary governance issues;
- Understand the strengths and weaknesses of their current governance framework;
- Develop Board governance charters;
- Consider structure and composition of Boards and committees;
- Evaluate the Board’s performance; and Resolve governance issues.