A Critical Assessment of Pertinent Locus Standi Features of the Derivative Remedy under Zimbabwe's New Companies and Other Business Entities Act

2022 ◽  
pp. 1-24
Author(s):  
Friedrich Hamadziripi ◽  
Patrick C Osode
Keyword(s):  
Corporate Governance ◽  
Critical Assessment ◽  
Governance System ◽  
Good Corporate Governance ◽  
Locus Standi ◽  
Corporate Governance System ◽  
Governance Practices ◽  
Legislative Amendments ◽  
Business Entities ◽  
The One

Abstract The importance and contribution of derivative litigation to the effectiveness and credibility of a jurisdiction's corporate governance system is indisputable. There is a positive correlation between good corporate governance practices, which include shareholders’ rights, and investors’ return on their investments. On the one hand, an overly pro-shareholder derivative scheme is vulnerable to abuse and results in unnecessary interference with company management. This may, in turn, discourage directors from entrepreneurial risk-taking and undermine enterprise efficiency. On the other hand, a complex and ineffective system of derivative litigation protects errant directors and decreases investor confidence. This article is a critical assessment of Zimbabwe's recently adopted statutory derivative remedy. The analysis focuses on five locus standi-related aspects of the new statutory derivative regime. The article highlights some major weaknesses within Zimbabwe's statutory remedy and proposes pertinent legislative amendments.

Corporate Governance in Malaysia: Issues and Challenges (Isu dan Cabaran Tadbir Urus Korporat di Malaysia)

2019 ◽  
Vol 16 (2) ◽  
pp. 232-253
Author(s):  
Nina Nurasyekin Zulkefli ◽  
SM Abdul Quddus
Keyword(s):  
Corporate Governance ◽  
Financial Crisis ◽  
Good Practice ◽  
Asian Financial Crisis ◽  
Governance System ◽  
Good Corporate Governance ◽  
Corporate Governance System ◽  
Governance Practices ◽  
Governance Institutions ◽  
Code Of Corporate Governance

Corporate governance is a set of structural process that includes the actions of directing and controlling by the authorized board of directors. In Malaysia, corporate governance is directly under the involvement of the Ministry of Finance, Bursa Malaysia, and Securities Commissions (SC) and Registrar of Company. A good reform of corporate governance in Malaysia is essential to enhance the quality of corporate governance practices after the Asian Financial Crisis 1997. The statistic shows that the low number of Malaysian companies adhered to good corporate governance practices. This poses a question of the extent to what issues and challenges faced by the Malaysian companies reluctantly to adopt a good practice of corporate governance. Hence, the Malaysian government has initiatively introduced Malaysia Code of Corporate Governance (MCCG) as a new code and rules for solving the problems of corporate governance. This study is important to ensure better management of corporate governance of companies in Malaysia, accountability, integrity, and transparency, thereby ensuring the survival of Malaysian corporate governance institutions around the world. The paper uses a qualitative approach. The findings from this study highlight that the introduction of MCCG is tantamount to solve the underpinning problems of the corporate governance system. Keywords: Corporate governance, Malaysia, MCCG, Asian Financial Crisis. Abstrak Tadbir urus korporat adalah satu set proses struktur yang merangkumi sistem penyeliaan oleh lembaga pengarah yang diberi kuasa. Di Malaysia, tadbir urus korporat adalah di bawah penglibatan Kementerian Kewangan, Bursa Malaysia, dan Suruhanjaya Sekuriti (SC) dan Suruhanjaya Syarikat Malaysia. Pembaharuan tadbir urus korporat yang baik di Malaysia adalah penting untuk meningkatkan kualiti amalan tadbir urus korporat selepas Krisis Kewangan Asia 1997. Statistik menunjukkan bahawa bilangan syarikat Malaysia yang rendah dalam mematuhi amalan tadbir urus korporat yang baik. Ini menimbulkan persoalan sejauh mana isu dan cabaran yang dihadapi oleh syarikat-syarikat di Malaysia yang enggan mengamalkan amalan tadbir urus korporat yang baik. Justeru, kerajaan Malaysia telah memperkenalkan Kod Tadbir Urus Korporat Malaysia (MCCG) sebagai kod baru dan peraturan untuk menyelesaikan masalah tadbir urus korporat. Kajian ini penting untuk memastikan pengurusan tadbir urus korporat yang lebih baik di Malaysia, akauntabiliti, integriti dan ketelusan, serta seterusnya memastikan kelangsungan institusi tadbir korporat Malaysia di seluruh dunia. Kaedah kajian adalah menggunakan pendekatan kualitatif. Dapatan kajian ini menunjukkan bahawa pengenalan MCCG adalah penting untuk menyelesaikan masalah asas sistem tadbir urus korporat. Kata Kunci: Tadbir Urus Korporat, Malaysia, MCCG, Krisis Kewangan Asia.  

scholarly journals Examining the Link Between Religion and Corporate Governance: Insights From Nigeria

2018 ◽  
Vol 59 (5) ◽  
pp. 956-994 ◽  
Author(s):  
Franklin Nakpodia ◽  
Philip J. Shrives ◽  
M. Karim Sorour
Keyword(s):  
Corporate Governance ◽  
Content Analysis ◽  
Institutional Environment ◽  
Qualitative Content Analysis ◽  
Business Environment ◽  
Research Approach ◽  
Governance System ◽  
Good Corporate Governance ◽  
Corporate Governance System

This article examines whether the degree of religiosity in an institutional environment can stimulate the emergence of a robust corporate governance system. This study utilizes the Nigerian business environment as its context and embraces a qualitative interpretivist research approach. This approach permitted the engagement of a qualitative content analysis (QCA) methodology to generate insights from interviewees. Findings from the study indicate that despite the high religiosity among Nigerians, religion has not stimulated the desired corporate governance system in Nigeria. The primary explanation for this outcome is the presence of rational ordering over religious preferences thus highlighting the fact that religion, as presently understood and practiced by stakeholders, is inconsistent with the principles underpinning good corporate governance.

scholarly journals The Impact of Corporate Governance on Company Performance: A Study among Medium and Large Enterprises in Kosovo

2018 ◽  
Vol 9 (6) ◽  
pp. 207-212
Author(s):  
Saxhide Mustafa ◽  
Hajdin Berisha ◽  
Shyqyri Llaci
Keyword(s):  
Corporate Governance ◽  
Company Performance ◽  
Governance System ◽  
Market Experience ◽  
Corporate Governance System ◽  
Governance Practices ◽  
The Impact ◽  
Proper Balance ◽  
Large Enterprises

Abstract An effective corporate governance system is established to ensure proper balance of long-term interests of different stakeholders (primarily: owners, employees and management) and improve company's performance and its competitive position in the market. This paper provides a theoretical discussion and empirical evidence on the interdependence between corporate governance and company performance among medium and large enterprises in Kosovo. A questionnaire survey was employed for data collection purposes. The study included a sample of 87 managers from 87 medium and large enterprises. Results indicate that effects of corporate governance on the performance tend to be greater in larger companies. Regarding the determinants, the theoretical expectations are confirmed. Results confirm that the size of the company, the level of investment, export activities and company life expectancy are statistically significant determinants of the adoption of corporate governance practices. As a result, larger companies with large scales of investment and longer market experience tend to adopt more corporate governance practices. The study suggests that corporate governance will inevitably affect companies’ performance and further research is needed in this context.

scholarly journals Corporate governance in Slovenia: Working at last?

2019 ◽  
Vol 3 (2) ◽  
pp. 40-51 ◽  
Author(s):  
Sandra Damijan ◽  
Jože P. Damijan
Keyword(s):  
Corporate Governance ◽  
Energy Transport ◽  
Gain Control ◽  
Governance System ◽  
Private Companies ◽  
Corporate Governance System ◽  
Governance Practices ◽  
Privatized Firms ◽  
Supervisory Boards ◽  
The Government

Because of deploying specific methods of privatization that favoured domestic over foreign owners and that enabled both internal owners and state-controlled funds to gain control over companies, corporate governance in Slovenia used to be a cumbersome issue over the last two decades. This led to an on-going battle for control over companies. On one side, in addition to management buy-outs, internal owners used peculiar methods, such as “shares parking” at related companies to gain control over companies of interest without having to engage in a takeover procedure. On the other side, the government used its state-controlled funds to gain control over strategic companies in specific sectors, such as finance, energy, transport and telecommunications. Combined with direct holdings of assets by the state, this gave the existing political coalition in power a mechanism to exert control over a large number of companies and to interfere with the management of privatized firms through an adverse selection of candidates for supervisory boards and board of directors. The victims of these unsound corporate governance practices were usually small shareholders and suboptimal performance of companies. For a private sector, the “game-changer” was a financial crisis that deprived many management-owned companies of control over the companies, while government involved in some changes in the regulatory framework to fight peculiar corporate governance practices. However, while Slovenia has gradually established a modern framework for a transparent corporate governance system, regulating listed and non-listed private companies as well as SOEs, the practices deployed by the parties are still far from transparent, adequate and professional.

scholarly journals The key challenges of corporate governance of firms: Empirical evidence from Sub-Saharan African anglophone (SSAA) countries

2016 ◽  
Vol 13 (3) ◽  
pp. 415-433
Author(s):  
Adeoye Amuda Afolabi
Keyword(s):  
Corporate Governance ◽  
Empirical Evidence ◽  
South African ◽  
Vital Role ◽  
Accounting System ◽  
Governance System ◽  
Listed Firms ◽  
Corporate Governance System ◽  
Governance Practices ◽  
Sub Saharan

This paper uses empirical evidence to identify views about the important components of good corporate governance practice for listed firms in Sub-Saharan African Anglophone countries. This study used survey questionnaire based on international corporate governance norms, data were collected from listed firms in Ghana, Nigeria and South Africa. The findings include: In Ghanaian and South African firms there are evidence that regulatory framework and enforcement of corporate governance promote sound corporate governance system. This study revealed that commitment of board of directors to disclosure and communication may provide effective corporate practices. Political environment and ownership structure of firms’ hinder sound corporate governance practices. Accounting system operating in each country plays a vital role in promoting sound corporate governance system. However, societal, cultural and corruption seem to deter corporate governance system in Ghanaian and South African firms. We recommend that there should be prudent monitoring of corporate governance rules and enforcement.

scholarly journals Corporate governance and management practices in Japan: Current issues

2003 ◽  
Vol 1 (2) ◽  
pp. 38-52 ◽  
Author(s):  
Masao Nakamura
Keyword(s):  
Corporate Governance ◽  
Management Practices ◽  
Governance Reform ◽  
Governance System ◽  
Policy Initiatives ◽  
Corporate Governance System ◽  
Corporate Governance Reform ◽  
Governance Practices ◽  
Potential Applicability ◽  
Anglo American

Facing the prolonged recession since the burst of a financial bubble in 1990 Japan has been experimenting with various new policy initiatives both in the public and private sectors, corporate governance reform being one of such policy initiatives. Japanese corporate governance practices in particular have been severely blamed as one of the primary reasons for Japan’s poor economic performance in the last decade. In this paper we discuss the relationship between corporate governance and various aspects of management practices in Japan. (Corporate governance in Japan emphasizes not only the shareholders and managers, as in the West, but also the workers as important corporate stakeholders.) We point out also that Japan’s relatively loosely practiced anti-monopoly (anti-trust) laws continue shaping Japanese corporate governance behavior. We then evaluate Japan’s corporate governance reform movement which emphasizes the transformation of the current corporate governance system, which pays little attention to individual shareholders, into one similar to the Anglo-American system which focuses more on shareholders’ value. We tentatively conclude that Japan has not yet found a new corporate governance system that can serve as an equilibrium business system in that it is compatible with Japan’s management, legal and other practices and the incentives of the constituents of Japanese firms. This paper also presents various incentive and institutional issues which would have to be considered by those who consider potential applicability of the Japanese-like corporate governance practices to transitional economies.

Corporate Governance, Socio-Economic Factors and Economic Growth: Theoretical Analysis

2017 ◽  
Vol 7 (1) ◽  
pp. 311 ◽  
Author(s):  
Muhammad Arslan ◽  
Jamal Roudaki
Keyword(s):  
Economic Growth ◽  
Corporate Governance ◽  
Economic Factors ◽  
Governance System ◽  
Policy Makers ◽  
Stock Market Development ◽  
Corporate Governance Mechanisms ◽  
Corporate Governance System ◽  
Governance Practices ◽  
Socio Economic Factors

Corporate governance (CG) fosters dynamic economic growth through managing stakeholder interest and reducing the cost of capital which ultimately lead towards the development of financial markets and better firm performance. Recently, regulators and policy makers around the world either have revised extensively or introduced new laws, codes and listing regulations to enhance effectiveness and transparency of corporate governance practices. Established economic theories were already aware of the significance of corporate governance for development and economic growth. This study assesses the link between corporate governance, socio-economic factors and economic growth through a consistent literature review. A majority of studies show a positive effect of corporate governance on economic growth of a country through stock market development. Moreover, theoretical and empirical research reveals that socio-economic factors are also a pivotal determinant of corporate governance mechanisms. This study summarizes the key findings and concludes that dynamic and flexible corporate governance system claims more demand as compared to rigorous corporate governance principles especially in emerging countries. This study also finds the need of methodological advancement in corporate governance research. Nevertheless, the social economic factors, political and legal system of the country should be blended in introduction and adaption of corporate governance system. The regulators and policy makers can use theoretical grounds of study for reforms of the corporate governance system.

Development of Corporate Governance Standards in UK: The Higgs Report

2004 ◽  
pp. 118-128
Author(s):  
M. Gracheva
Keyword(s):  
Corporate Governance ◽  
Boards Of Directors ◽  
Developed Countries ◽  
Executive Directors ◽  
Governance System ◽  
Financial Reports ◽  
Good Corporate Governance ◽  
Corporate Governance System ◽  
Regulatory Bodies ◽  
In The Beginning

In 2001-2002 numerous scandals have occurred in developed countries in connection with financial reports' distortions and breaches of good corporate governance principles. As a result, regulatory bodies began to study the role of boards of directors in preventing such cases, putting an emphasis on the duties and powers of non-executive directors. Serious steps have been taken in United Kingdom, where the first corporate governance standards were established in the beginning of the 1990s. The article analyses the document published in January 2003 — the review of the role and effectiveness of non-executive directors prepared by D. Higgs team. The author considers the peculiarities of the British corporate governance system and examines most important provisions of the Higgs report.

scholarly journals Augmenting corporate governance through system dynamics

2015 ◽  
Vol 13 (1) ◽  
pp. 1063-10070
Author(s):  
Mridula Mridula ◽  
Kuldeep Kumar
Keyword(s):  
Corporate Governance ◽  
System Dynamics ◽  
System Dynamics Model ◽  
Dynamics Model ◽  
Governance System ◽  
Good Corporate Governance ◽  
Corporate Governance System ◽  
Efficiency And Effectiveness ◽  
Financial Issue ◽  
Holistic Manner

The paper aims to augment good corporate governance as a whole with the efficiency and effectiveness of system dynamics via a system dynamics model. The majority of study of corporate governance focus on financial issue, ownership, agency theory etc. rather than analyzing the relation of all aspects associated to corporate governance system as a whole. This study aims to address this gap by focusing on corporate governance in a holistic manner. The value is determined as two-fold: i) It is possible to understand the importance of system dynamics methodology; and ii) It can help the organization to quantify corporate governance for development of organization in holistic manner.

scholarly journals Financial reporting, corporate communication and governance

2003 ◽  
Vol 1 (2) ◽  
pp. 31-37 ◽  
Author(s):  
Andrea Melis
Keyword(s):  
Corporate Governance ◽  
Financial Reporting ◽  
Corporate Communication ◽  
Governance System ◽  
Good Corporate Governance ◽  
Corporate Governance System ◽  
Positive Perspective ◽  
Anglo American ◽  
Highly Correlated

This paper describes the issues of financial reporting and corporate communication in connection with corporate governance. The analysis is based on the studies conducted in the Anglo-American and the European academic literature both from a normative and a positive perspective. It is discussed why accounting standards are not able by themselves to avoid corporate “miscommunication”, and how a good corporate governance system is a sine qua non to improve the quality of corporate communication and financial reporting. The analysis also shows how the effectiveness of the systems of financial reporting and corporate governance seems to be highly correlated.

Sign in / Sign up

Export Citation Format

Share Document