Corporate Governance refers to the way in which businesses are governed and to what purpose. It identifies who has power and accountability, and who makes decisions.
Corporate governance is important because it creates a system of rules and practices that determines how a business operates and how it aligns with the interest of all its stakeholders. Good corporate governance leads to ethical business practices, which leads to financial viability. In turn, that can attract investors.
The key components we look at:
● Board of Directors Establishment- A group of people that provides expertise for a business or corporate. A board of directors is responsible for overseeing and advising a company so that it functions as effectively as possible.
● Board Audits-A Board audit is a committee of a business’s board of directors which is responsible for oversight of the financial reporting process, selection of the independent auditor, and receipt of audit results both internal and external.
● Board Appraisal and Evaluation-A board evaluation is a process that measures the accountability, transparency, and effectiveness of board members. especially in the aspect of board governance.
Family business challenges: Lack of corporate governance
A lack of governance in Family businesses has resulted in poor decision-making, high employee turnover, management members, corruption, lack of diversity, theft, fraud, and even scandals.
To address these challenges, that’s where Institute for family business comes in. As your trusted advisors, we can help your family business by providing support with Corporate Governance at every stage. No matter where your business is on its journey to success, we can be at your side with the insights and solutions you need to stay fit for growth and moving forward at the right pace.