Write the elements of institutional good governance. Mention the arrangements in the financial institution in a well-organized manner.
“Corporate governance is the system by which the companies are directed and controlled.” – Adrain Cadbury
“Corporate governance is the process by which corporations are made responsive to the rights and wishes of stakeholders.” – Demb and Neubauer
Institutional good governance is the complete form of policy, customs and law regarding the operation of a company.
It administers, directs and controls the management and operation of the company.
Institutional good governance is a principle based on the basic beliefs about the operation of a company.
It emphasizes the accountability of the company’s operators.
The company demands transparency in its operations.
Establishes relationships between company stakeholders.
The rights of the company’s shareholders, employees, customers, creditors, moneylenders and regulators
Remains resilient to voice.
Organization and Procedure of the Board of Directors and Management
Institutional accountability and (transparency) commitment
Financial transparency and communication of information
Feelings of belonging to the company
To enhance the welfare of shareholders, sahu and shareholders through regulatory mechanism
Objectives / Importance
The good governance of the company is considered as a new ideal with the highest importance today as the company operated with clean and business values and values will protect the rights of the shareholders, encourage investment promotion and achieve overall business success. Therefore, the importance of corporate governance is understood as follows:
– To make the internal control and audit of the company objective
– To test the independence of external auditors and the quality of their audit
– To study managerial risk
– To make necessary arrangements for the financial statements
Remuneration and facilities of Chief Executive Officer, authorized other employees and workers
– To review
– To analyze the role that the operator has to play
– To determine the selection system of the person to be nominated in the Board of Directors.