Corporate governance is a set of procedures, structures and procedures that a company uses to manage risk and ensure accountability. Its aim is to give a plan for long-term prosperity, while reducing the chance of losses in financial terms, waste, risks and corruption.

Fairness, diversity and transparence are the three fundamental principles of corporate governance. These principles are derived from the idea that the management and the board must additional info treat all stakeholders equally and fairly, including staff and shareholders. This means establishing, sustaining and setting up a formal and transparent process to select and oversee important board members and executives their performance. It is also about ensuring that the remuneration of the top executives and the board is aligned with the company’s long-term interests and providing the necessary supervision to prevent conflicts of interest.

Transparency means being transparent and willing to share accurate information with all stakeholders, including shareholders. This means that the company is willing to an organisation to share positive and negative information. It also implies publishing this information on regular basis and making it easily accessible.

Depending on the type of company depending on the type of company, different committees and boards may have a role in corporate governance. However, it’s usually the duty of the board to establish and oversee a formal system for governance. This involves appointing a leader or presiding director if the board structure is one in which the CEO and chair are joined. The director should be independent of chair and be appointed for a period set by the board. The director who is the lead is responsible for implementing governance policies and procedures in line with the business’s legal, regulatory and cultural environment.