WhatisCorporateGovernance.pptVIP

What is Corporate Governance? Alison Dillon Kibirige Corporate Governance Contemporary corporate governance started in 1992 with the Cadbury report in the UK Cadbury was the result of several high profile company collapses is concerned primarily with protecting weak and widely dispersed shareholders against self-interested Directors and managers Corporate Governance Parties Shareholders – those that own the company Directors – Guardians of the Company’s assets for the Shareholders Managers who use the Company’s assets Corporate Governance Primarily concerned with public listed companies i.e. those listed on a Stock Exchange Focused on preventing corporate collapses such as Enron, Polly Peck and the Maxwell companies Corporate Governance What relevance does it have to Africa where there are few public listed companies Most companies are non-listed, private family owned businesses where the shareholders and the managers are often the same people Four Pillars of Corporate Governance Accountability Fairness Transparency Independence Accountability Ensure that management is accountable to the Board Ensure that the Board is accountable to shareholders Fairness Protect Shareholders rights Treat all shareholders including minorities, equitably Provide effective redress for violations Transparency Ensure timely, accurate disclosure on all material matters, including the financial situation, performance, ownership and corporate governance Independence 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 Corporate Governance in Africa In 1994, The King Report in South Africa also included within its Code of Corporate Governance requirements on sustainability and ethical standards This was due to the context of a developing country and business ethics in Africa Sustainability No generally accepted definition Most commonly used is from th