The Board believes that the QCA Code provides the Company with the principles which will both enable and ensure that a proper culture of governance is set and maintained which will in turn enable the Company to achieve these standards thus building a successful and long-term business for all stakeholders. Establish a strategy and business model which promote long-term value for shareholders. The Company is a mineral exploration and development company whose objective is to discover and develop world class diamond deposits in order to create value for its shareholders. Its strategy to achieve this is to explore in politically stable and geographically attractive countries such as Finland.
December 19, The Importance of Corporate Governance for SMEs Cooper Fitch work with a number of small to medium sized enterprises across the region, both on an advisory networking basis and for their recruitment and executive search requirements. What is Corporate Governance? Corporate governance in simple words is the system by which an entity is directed and controlled.
Elements of good Corporate Governance: Corporate Governance is greatly applied within large companies. However, it does not discriminate against company size and is equally important in a food restaurant than it is in a large natural gas provider. In small business usually the owners are the managers of the businesses.
The risk here is when multiple roles are executed by by members of a family, it becomes difficult to define responsibility and have an agreed distribution of power as different generations join the business. Secondly, not much importance is given to the impact that senior managers can have on a business.
This is because they can provide valuable insights of what is actually going Importance of corporate governance within the business and the potential risks that the business is facing. Thirdly, the boards of small companies lack diversity and Non-executive directors.
As non-executive directors are considered to be a fresh pair of eyes to any business and provide their independent judgement relating to the business strategy and performance they can add significant value to the business. However, their appointment should be formal and be a board decision.
Moreover, there can be a lack of formal policies and procedures as members might be familiar with one another. This creates a higher risk of fraud and error due to the absence of a formalized contract and rigorous procedure in place.
The creation of formal contracts, policies and procedures will lead to less conflict among the members. It will also reduce the chances of fraud and error and create greater transparency. The business will be run with greater integrity and hence will have a better reputation as well.
The preparation of annual reports will allow the business to identify potential risks within the environment it operates in and mitigate them accordingly. Moreover, these reports can be used to carry out performance appraisal and reward the staff accordingly as it will be fair and just.
A crucial step of setting up a company is to invite external directors. Non-executive directors can be hired during growth, acquisition or crisis to lead the company. They will not only provide the small companies with their valuable advice regarding the business strategy but can also bring in commercial contacts.
For example, many SMEs would require finance for growth. A non-executive director could assist in obtaining finance from a local bank or financial institution. Conclusion Change management can be a difficult task for many companies especially when it comes to understanding the impact that governance can have on a company.
A greater challenge that they will face is the cost of hiring non-executive directors. However, an alternative is to award the non-executive directors with shares of the company.
However, if the shares do not have a good market value then it might be difficult to pay their fees through retained earnings or profits. In order to implement these changes, an intense in-house training should be given to the members of the firm and needs to be explained with great detail to the owners and managers.Risk Management and Corporate Governance: The Importance of Independence and Financial Knowledge for the Board and the Audit Committee.
CORPORATE GOVERNANCE MAXS firmly believes in the importance of corporate governance as they preserve the culture of transparency, accountability, and integrity. The Group is also committed in enhancing the shareholder’s interests and maintaining relationships.
The Company is committed to the principles and best practices contained in its Revised Manual on Corporate Governance (“Manual. Divorce and Legal Separation Corporate Governance is of upmost importance. Corporate governance is an important, and oftentimes overlooked, part of setting up your new business.
Good corporate governance documents, such as operating agreements, buy/sell agreements, and corporate bylaws ensure that a business runs smoothly and efficiently. Sep 17, · Corporate GovernanceThe Directors recognise the importance of good corporate governance and have chosen to apply the Quoted Companies Alliance Corporate Governance Code (the ‘QCA Code’).
The QCA Code was developed by the QCA in consultation with a number of significant institutional small company investors, as an alternative corporate governance code applicable to AIM. 7 days ago · Read this section of the Corporate Governance Survey.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances. Sep 18, · The move is a welcome first step in reforming an essential part of the corporate governance process.
SEC rules governing the proxy process are at the center of investor participation in, and influence over, corporate governance at public companies.