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 agency that the Board of Directors must liberate all relevant information to the stakeholders. They must demo all the necessary fiscal together with operational information to the stakeholders. They must non enshroud whatsoever of import information or keep whatsoever secrecy.
2. Protection of Shareholders' Rights : The Board of Directors must protect the rights of the stakeholders. They must protect all the stakeholders, peculiarly the minority stakeholders.
3. More Powers to CEO : The CEO must endure given to a greater extent than powers together with therefore that he tin approve the companies plans together with strategies independently.
4. Accountability : The CEO together with the Board of Directors must endure made accountable for their actions to the stakeholders together with to the entire society.
5. Based on Ethics : Corporate governance is based on ethics, moral principles together with 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 past times companies all over the world. It is given a legal recognition inward 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 together with to protect the rights of all the stakeholders of the company.