Podcast
Questions and Answers
To ensure the better protection of shareholders and other stakeholders' rights, full disclosure of the company's corporate governance ______, programs and procedures is imperative.
To ensure the better protection of shareholders and other stakeholders' rights, full disclosure of the company's corporate governance ______, programs and procedures is imperative.
policies
This is better done if the said policies, programs and procedures are contained in ______.
This is better done if the said policies, programs and procedures are contained in ______.
one
The submission of the Manual to regulators and posting it in companies' websites ensure ______ access by any interested party.
The submission of the Manual to regulators and posting it in companies' websites ensure ______ access by any interested party.
easier
The company should establish standards for the ______ selection of an external auditor, and exercise effective oversight of the same to strengthen the external auditor's independence and enhance audit quality.
The company should establish standards for the ______ selection of an external auditor, and exercise effective oversight of the same to strengthen the external auditor's independence and enhance audit quality.
Signup and view all the answers
The ______ Committee should have a robust process for approving and recommending the appointment, reappointment, removal, and fees of the external auditor.
The ______ Committee should have a robust process for approving and recommending the appointment, reappointment, removal, and fees of the external auditor.
Signup and view all the answers
The appointment, reappointment, removal, and fees of the external auditor should be recommended by the Audit Committee, approved by the ______ and ratified by the shareholders.
The appointment, reappointment, removal, and fees of the external auditor should be recommended by the Audit Committee, approved by the ______ and ratified by the shareholders.
Signup and view all the answers
For removal of the external auditor, the reasons for removal or change should be disclosed to the regulators and the ______ through the company website and required disclosures.
For removal of the external auditor, the reasons for removal or change should be disclosed to the regulators and the ______ through the company website and required disclosures.
Signup and view all the answers
To ensure the better protection of shareholders and other stakeholders' rights, full disclosure of the company's corporate governance policies, programs and ______ is imperative.
To ensure the better protection of shareholders and other stakeholders' rights, full disclosure of the company's corporate governance policies, programs and ______ is imperative.
Signup and view all the answers
The submission of the ______ to regulators and posting it in companies' websites ensure easier access by any interested party.
The submission of the ______ to regulators and posting it in companies' websites ensure easier access by any interested party.
Signup and view all the answers
The company should establish standards for the appropriate selection of an external ______, and exercise effective oversight of the same to strengthen the external auditor's independence and enhance audit quality.
The company should establish standards for the appropriate selection of an external ______, and exercise effective oversight of the same to strengthen the external auditor's independence and enhance audit quality.
Signup and view all the answers
Study Notes
Basic Principles of Effective Corporate Governance
- Effective corporate governance is transparent, protects shareholders' rights, and includes both strategic and operational risk management.
- It is concerned with both long-term earning potential and short-term earnings, and holds directors accountable for their stewardship of the business.
Three Basic Principles of Effective Corporate Governance
- Transparency and Full Disclosure: ensures the board meets the information needs of investment communities, safeguards integrity in financial reporting, and has sound disclosure policies and practices.
- Accountability: ensures the board clarifies its role and that of management, promotes objective, ethical, and responsible decision making, and lays solid foundations for management oversight.
- Corporate Control: ensures the board builds long-term sustainable growth in shareholders' value, creates an environment to take risk, encourages enhanced performance, and recognizes and manages risk.
Board Responsibilities
- Ensures an effective succession planning program for directors, key officers, and management to ensure growth and increase in shareholders' value.
- Develops a policy on board nomination, which includes procedures for accepting nominations from minority shareholders.
- Ensures the nomination and election process is transparent, and reviews and evaluates the qualifications of all persons nominated to the Board.
Related Party Transactions
- The Board should have overall responsibility for ensuring a group-wide policy and system governing related party transactions (RPTs) and other unusual or infrequently occurring transactions.
- The policy should include appropriate review and approval of material or significant RPTs, guaranteeing fairness and transparency of the transactions.
Strengthening the External Auditor's Independence
- The company should establish standards for the appropriate selection of an external auditor, and exercise effective oversight of the same to strengthen the external auditor's independence and enhance audit quality.
- The Audit Committee should have a robust process for approving and recommending the appointment, reappointment, removal, and fees of the external auditor.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
Test your knowledge on the basic principles of effective corporate governance, which include transparency, shareholder rights protection, risk management, and accountability of directors. Explore the importance of long-term earning potential and short-term earnings in corporate governance.
