Podcast
Questions and Answers
What did the Cadbury Committee report define as corporate governance?
What did the Cadbury Committee report define as corporate governance?
Which of the following is NOT one of the principles of good corporate governance?
Which of the following is NOT one of the principles of good corporate governance?
What is the primary focus of corporate governance according to the content?
What is the primary focus of corporate governance according to the content?
In the context of corporate governance, what does transparency encompass?
In the context of corporate governance, what does transparency encompass?
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Who is primarily responsible for the governance of a company?
Who is primarily responsible for the governance of a company?
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Which report is considered a landmark in the context of corporate governance in the UK?
Which report is considered a landmark in the context of corporate governance in the UK?
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Which aspect does the framework of corporate governance NOT directly address?
Which aspect does the framework of corporate governance NOT directly address?
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What is the primary function of the Copper Governance Advisory Committee?
What is the primary function of the Copper Governance Advisory Committee?
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What do the governance responsibilities of a board primarily include?
What do the governance responsibilities of a board primarily include?
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According to Section 157A of the Companies Act, who has the primary role in corporate governance?
According to Section 157A of the Companies Act, who has the primary role in corporate governance?
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What must the board of directors not overlook regarding the existence of companies?
What must the board of directors not overlook regarding the existence of companies?
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What is viewed as an enabler of long-term value protection according to corporate governance principles?
What is viewed as an enabler of long-term value protection according to corporate governance principles?
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What does the performance aspect of governance focus on for the board of directors?
What does the performance aspect of governance focus on for the board of directors?
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What is one of the foundational principles of the court regarding the role of the board?
What is one of the foundational principles of the court regarding the role of the board?
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Which of the following is a pressing demand on the board of directors?
Which of the following is a pressing demand on the board of directors?
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What aspect of governance may overshadow the board's focus on performance?
What aspect of governance may overshadow the board's focus on performance?
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Why must the board also consider the needs of stakeholders?
Why must the board also consider the needs of stakeholders?
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What is a tangible benefit of good corporate governance for firms?
What is a tangible benefit of good corporate governance for firms?
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How does transparency in corporate governance impact entrepreneurial activity?
How does transparency in corporate governance impact entrepreneurial activity?
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What is a consequence of opaque systems in corporate governance?
What is a consequence of opaque systems in corporate governance?
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In what way does strong corporate governance affect foreign direct investment?
In what way does strong corporate governance affect foreign direct investment?
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How can well governed companies benefit in terms of liability insurance?
How can well governed companies benefit in terms of liability insurance?
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What does fairness in corporate governance primarily focus on?
What does fairness in corporate governance primarily focus on?
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Sustainability in corporate governance primarily considers which of the following aspects?
Sustainability in corporate governance primarily considers which of the following aspects?
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What is meant by diversity in the context of corporate governance?
What is meant by diversity in the context of corporate governance?
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Capability in corporate governance refers to which of the following?
Capability in corporate governance refers to which of the following?
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Which component of corporate governance is responsible for establishing regulations?
Which component of corporate governance is responsible for establishing regulations?
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Which of the following parties are directly involved in holding the board accountable?
Which of the following parties are directly involved in holding the board accountable?
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What is the role of capacity builders within the corporate governance ecosystem?
What is the role of capacity builders within the corporate governance ecosystem?
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What is one of the responsibilities of the Corporate Governance Advisory Committee?
What is one of the responsibilities of the Corporate Governance Advisory Committee?
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Leadership in corporate governance is focused on which aspect?
Leadership in corporate governance is focused on which aspect?
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What is the primary focus of effective corporate governance?
What is the primary focus of effective corporate governance?
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What does the principal-agent problem primarily highlight?
What does the principal-agent problem primarily highlight?
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What role do incentives and disincentives play in corporate governance?
What role do incentives and disincentives play in corporate governance?
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Why is there a need for a sound legal and regulatory framework in corporate governance?
Why is there a need for a sound legal and regulatory framework in corporate governance?
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What is NOT a characteristic of good corporate governance?
What is NOT a characteristic of good corporate governance?
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In the context of corporate governance, who is considered the agent of shareholders?
In the context of corporate governance, who is considered the agent of shareholders?
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What is one possible consequence of good corporate governance on company valuation?
What is one possible consequence of good corporate governance on company valuation?
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How do regulators in Singapore aim to promote corporate governance?
How do regulators in Singapore aim to promote corporate governance?
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Which of the following issues relates directly to ethical dilemmas in corporate governance?
Which of the following issues relates directly to ethical dilemmas in corporate governance?
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What is a major challenge faced by regulators regarding corporate governance?
What is a major challenge faced by regulators regarding corporate governance?
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Study Notes
Corporate Governance
- Corporate governance is a system for directing and controlling companies.
- The Cadbury Committee report (1992) defined corporate governance as a system by which companies are directed and controlled.
- Boards of directors are responsible for corporate governance of their companies.
- Corporate governance involves people, processes and structures that drive behavior
- Corporate governance focuses on long-term interests of all stakeholders, although shareholder value is also recognized.
- Key principles include transparency (decisions made openly and with full disclosure), accountability, integrity (reputation is valued), fairness, sustainability (long-term view, environmental impact, workers, and society), diversity, capability, and leadership.
- A corporate governance ecosystem includes regulators, board management, company secretaries, auditors, shareholders, and stakeholders.
- Corporate governance is essential for the long-term success of companies and a sound legal and regulatory framework is necessary in the market.
- Corporate governance leads to increased valuations, liquidity, and share price/volume. Investors are looking for good governance practices in companies to invest.
- The disclosure based regime is a market driven regime.
Disclosure-based regime
- Section 203 SFA (Securities and Futures Act) is the key piece of legislation for disclosure rules under SGX.
- Listing rules by themselves are a contract between SGX and listed companies
- Failure to disclose information according to the listing regulations is a possible criminal offence with fines, imprisonment, or both
- s199 SFA deals with false or misleading statements, applicable to all listed companies
- Directors and officers are personally accountable for breaches of disclosure rules in s331 SFA
- Disclosure requirements are detailed in the Listing Manuals.
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Description
This quiz explores the fundamentals of corporate governance, including its definition, key principles, and the roles of various stakeholders. Gain insights into the importance of transparency, accountability, and sustainability within corporate structures. Understand how these elements contribute to the long-term success of companies.
