Corporate
Governance can simply be defined as the system of practices, rules and
procedures by which an enterprise is controlled and directed. There may be a
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Firstly, you need
to understand the basic and in-depth concept of corporate governance. You need
to remember that it essentially involves balancing all the interests of an
enterprise’s stakeholders like management, shareholders, suppliers, customers,
financers, and so on. You even need to realize that corporate governance even
provides the structure to attain an enterprise’s objectives. It is also
something that’s meant to practically cover each sphere of management, starting
from the internal controls and action plans to corporate disclosure and
performance measurement.
Phew!!! Are you
feeling dizzy? If yes, then just control your emotions and keep reading the
blog as whatever was stated above was only a tip of the iceberg. Don’t read
anything political into the word ‘governance’ along with the other word
‘corporate’. Always remember that governance particularly refers to the group
of controls, rules, resolutions and policies all put into place for dictating
corporate attitude. You should even keep in mind that shareholders and
temporary advisors are crucial stakeholders who impact corporate governance
indirectly but they can’t be examples of this governance in themselves. On the
other hand, the board of directors is crucial in corporate governance. This
board can result in major consequences for equity valuation.
Yes, you may be
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