Corporate Governance represents the set of policies and procedures that determine how an organisation is directed, administered and controlled. Here are a few bits you might find useful for your ACCA P1 exam.
Objectives of Corporate Governance
- The codes and regulations provide a mechanism for successful business
- Corporate Governance codes and regulations help control executive directors of public companies
- They provide checks and alerts
Features of good Corporate Governance
- Power and influence – Good corporate governance prevents any single individual from having too much power in an organisation.
- Encourage investment – It attracts investment by promoting transparency and accountability
- Management – Good corporate governance ensures a company is managed in the interests of its stakeholders, not just a few top managers
- Protection – It protects the company through a system of controls