Corporate Governance
Created on Saturday, 08 June 2013 12:53 Written by Web Master
What benefit it brings to the corporate sector:
• Optimizes Operational and Financial Efficiency.
• Streamlines business processes, leading to better operating performance & lower capital expenditures.
• Improves the company’s ROCE.
• Better share price performance, higher profitability, larger dividend payouts & lower risk levels than peers.
• Improves Access to Outside Capital.
• Improves Valuation and Lowers the Cost of Capital.
• Builds/Improves the Company’s Reputation
REASON BEHIND UNDERDEVELOPED BOARD:
• Strong mgmt., who are simultaneously majority Shareholders.
• Large number of minority Shareholders, unable or unaware of collective action (lack of institutional investors).
• A general lack of understanding of the Board’s role within a company.
• Lack of experienced directors familiar with their rights & responsibilities.
Case study:
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