P1 Flashcards
(54 cards)
Refers to a process whereby elements in society wield power, authority and influence and an app policies and decisions concerning public life on social uplift.
Governance
System of rules practices and processes by which business corporations are directed and control
Corporate governance
It could be either direct or through legitimate institutions or representatives. It needs to be informed and organize. This means freedom of association and expression on one hand and an organizations civil society on the other hand
Participation
Good governance requires their legal framework that are enforced impartially and requires full protection of human rights
Rule of law
Decisions taken and their enforcement are done in a manner that follow rules and regulations. Information is freely available And directly accessible to those who will be affected by such decisions and their enforcement
Transparency
Good governance requires that institutions and practices try to serve needs of all stakeholders within a reasonable timeframe
Responsiveness
Meditation of the different interest in society is required. It also requires broad and long-term perspective on what is needed for sustainable human development and on how to achieve the goals of such development
Consensus oriented
Ensures that all its members feel that they have stake in it And have opportunities to improve or maintain their well-being
Equity and inclusiveness
The processes and institutions produce results that meets the needs of the society will making the best use of resources at its disposal
Effectiveness and efficiency
The key requirement of a good governance. Organization or institution is accountable to those who will be affected by its decisions or actions. It cannot be enforced without transparency and the rule of law
Accountability
Businesses that maintain revenues assets are a number of employees below certain level threshold. Businesses with not more than 100M assets of not more than 199 employees
SME or Small medium enterprises
The company that has held an initial public offering And who’s shares are traded on the stock exchange in the over-the-counter market
Publicly listed companies
Responsible through an elected board of directors to management operating units with oversight and assistance From internal auditors
Shareholders delegates
Oversee management for protection shareholders rights
Board of directors and it’s audit committee
Accountable to the shareholders. Responsible to act within the laws of society and to meet various requirements of creditors employees and stakeholders
Management and the board
It was released on November 10, 2016 during the third annual SEC PSE corporate governance forum.
Code of corporate governance
How is the arrangement of the code?
Principle recommendation and explanation
It is an organized marketplace or facility that brings together buyers and seller and execute trade of securities and or commodities
Exchange
It can be considered to be a high-level a statement of corporate governance good practices and are applicable to all companies
Principles
Objective great. That are intended to identify the specific features of corporate practice that are recommended for companies operating according to the code
Recommendations
Strive to provide companies with additional information on the recommended best practice
explanation
Combines the voluntary compliance with the mandatory disclosure
Comply or complain approach
Boards governance responsibilities (1-7)
Establishing a competent board
Establishing clear roles and responsibilities of the board
Establishing board committee
Fostering commitment
Reinforcing board independence
Assessing board performance
Strengthening board Ethics
Disclosure and transparency (8-11)
Enhancing company disclosure policy and procedures
Strengthening external auditors independence and improving audit quality
Increasing focus on non-financial and sustainability reporting
Promotes comprehensive and cost efficient access to that relevant information
