Impartiality
The Board of Directors must treat all the shareholders, employees, and communities fairly and with equal consideration. Board must maintain a careful balance between their various responsibilities, the people who answer to them, and the people they answer to. They must ensure every decision with an independent mindset, ensuring that no personal interests come between them and their business decision.
Corporate Governance: Principles and Legal Aspect
Corporate Governance consists of two words “Corporate” and “Governance”. The general meaning of governance can be understood as the act of the company that is used to cater to the actions and affairs of the company. In short, Corporate Governance is a set of rules that is used to govern the actions of the company. It ensures that the work of the company is running smoothly, the company achieves its objectives, and provides benefits to its shareholders, employees, and workers. It also ensures that in the long run, the company caters to the needs of society with the help of certain activities without hampering their employees.
Geeky Takeaways:
- A good Corporate Governance of a company ensures that the company is reaching various heights and earning profit in business without hampering society or their employees.
- It creates a sense of confidence in investors’ minds and helps the company generate enough capital for their company.
- It also helps the investors, stakeholders, and all the involved companies in the company to get an idea of whether the company is heading and what is the future of the company.
- It encourages the stakeholders of the company to only engage in the best practices for the company.
Table of Content
- What is Corporate Governance?
- Principles of Corporate Governance
- 1. Transparency
- 2. Accountability
- 3. Responsibility
- 4. Risk Management
- 5. Impartiality
- Legal Aspects under Corporate Governance
- Conclusion
- Corporate Governance- FAQs