All you Need To Know About Corporate Governance Frameworks
In the past corporate governance received little lip service. However, it is now the subject that is front and centre in the public’s consciousness. We can thank the happenings in the FAI in recent months for that. So, If you’re still not sure about Corporate Governance, here is all you need to know about corporate governance frameworks.
So what is Corporate Governance?
Firstly, in a nutshell, Corporate Governance is how a business is controlled and managed. Secondly, it starts with the Board of Directors who determines the corporate governance an is trusted to run the business. Thirdly, the directors should be engaged, independent, committed. So they are effective in their role at applying best practices and good corporate governance.
Is your business in need of a corporate governance framework?
So what is the purpose of a corporate governance framework? It provides a board of directors with the tools or foundation to establish, maintain and monitor standards. While employing policies for ethics, business practices and compliance.
A Corporate Governance Framework maps the responsibilities, procedures and practices the are the building blocks of a well-governed company.
The successful implementation of good corporate governance all comes down to the approach that goes beyond the legal requirements. It is designed to help in the establishment of business culture, accountability, business integrity and responsible business practices.
The benefits of this framework.
- It details the role and responsibilities of the senior management and the board of Directors.
- It holds the board of directors accountable
- Puts risk management at the centre of decisions making which will only enhance their decision-making process.
- Improves strategic performance
- Reduces the cost of capital
So what is good corporate governance? It is not just simply ticking a box and involves the board of directors driving on and promoting efficient and transparent monitoring of the company. And this comes with a full disclosure for accountability to the relevant shareholders.
Steps to implement Corporate Governance framework
CityTrust can help with all aspects of corporate governance including;
- Assessment of current framework which included policies, practices and procedures.
- Drafting and implementing frameworks and mechanisms as per regulations and standards. So, this would include corporate governance codes, company law etc.
- Duties of the board which includes terms of references, delegations and matters reserved for the chairperson.
- Training for senior management and board of directors