Features Of Corporate Governance - Characteristics

Features of Corporate Governance

The characteristics or features of corporate governance are listed below.

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1. Transparency : This way that the Board of Directors must unloosen all relevant information to the stakeholders. They must demonstrate all the necessary fiscal too operational information to the stakeholders. They must non shroud whatever of import information or hold whatever secrecy.
2. Protection of Shareholders' Rights : The Board of Directors must protect the rights of the stakeholders. They must protect all the stakeholders, particularly the minority stakeholders.
3. More Powers to CEO : The CEO must endure given to a greater extent than powers too hence that he tin approve the companies plans too strategies independently.
4. Accountability : The CEO too the Board of Directors must endure made accountable for their actions to the stakeholders too to the entire society.
5. Based on Ethics : Corporate governance is based on ethics, moral principles too values. So, the Board of directors must avoid unfair practices, cheating, exploitation, etc.
6. Universal Application : Corporate governance has universal application. That is, it is used yesteryear companies all over the world. It is given a legal recognition inwards many countries. All companies must role corporate governance voluntarily.
7. Systematic : Corporate governance is really systematic. It is based on laws, procedures, practices, rules, etc. All these laws are made to growth the wealth of the shareholders too to protect the rights of all the stakeholders of the company.