COMPLIANCE AS A TOOL OF COMPANY VALUE IMPROVEMENT

The article highlights the problem of increasing the value of the corporation using the new instrument of corporate governance - compliance, which is widely used in economically developed countries. There has been a lack of theoretical elaboration of compliance. Based on the existing experience of applying compliance, the article examines two main approaches: the minimum level of organization compliance and compliance culture. The article gives advantages that acquire the corporation using the compliance function, and possible implications for corporations that do not adopt compliance. It is concluded that the compliance system is a competitive advantage of the corporation, each year its value as a function of internal control and an integral element of the corporate governance system will grow that will ensure the conservation and sustainable development of the Corporation through the growth of its value.

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The German Supervisory Board on its Way to Professionalism

German Law Journal ◽

10.1017/s2071832200018472 ◽

2010 ◽

Vol 11 (2) ◽

pp. 115-158 ◽

Cited By ~ 2

Author(s):

Jan Lieder

Keyword(s):

Corporate Governance ◽

Internal Control ◽

Supervisory Board ◽

Decision Making Process ◽

European Level ◽

Governance System ◽

Management Board ◽

Corporate Governance System ◽

Flow Of Information ◽

Board System

The paper shows how the efficiency of the German supervisory board has been significantly improved in the last decade. These legal changes made the supervisory board climb to a higher position of power. In particular, the supervisory board is now significantly involved in the decision-making process on a company's overall strategic concept and on management decisions of fundamental importance. This emphasizes the future-oriented monitoring obligation of the supervisory board, which gained much more importance in the last decade. Furthermore, the new provisions increased the flow of information from the management board to the supervisory board, and they facilitated the monitoring efficiency of every single supervisory board member. In addition, several important changes improved the cooperation of supervisory board and auditors. The most recent changes strengthened the supervisory board's responsibility with regard to internal control and risk management.The vest majority of those changes in the German supervisory board system are very welcome. However, the current regime of German codetermination as well as the excessive size of the supervisory board has to be changed. Under the important developments on the European level, the time has come to act now in this direction. The advocated concept of codetermination by consensus provides a solid basis for more flexibility in the rigid German corporate governance system. It is also desirable to further limit the size of the supervisory board to no more than twelve members. Finally, the efficiency of the corporate governance system would be improved by allowing enterprises to choose between a one-tier and a two-tier board system.

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Nurturing Corporate Governance System: The Emerging Trends in Nigeria

Journal of Business Systems Governance & Ethics ◽

10.15209/jbsge.v4i2.156 ◽

2009 ◽

Vol 4 (2) ◽

Cited By ~ 12

Author(s):

Benjamin James Inyang

Keyword(s):

Corporate Governance ◽

Internal Control ◽

Governance Structure ◽

Securities And Exchange Commission ◽

Control Mechanisms ◽

Governance System ◽

Corporate Governance Structure ◽

Public Corporations ◽

Emerging Trends ◽

Corporate Governance System

The paper traced the nascent history of corporate governance system in Nigeria and noted the paucity of literature in the subject. Mainstream issues of corporate governance in the country emerged with the enactment of the Companies and Allied Matters Act of 1990 (CAMA 1990), which established the Corporate Affairs Commission (CAC), and charged it with the responsibility of overseeing the regulation and supervision of the formation, incorporation, registration, management and winding up of companies. The corporate governance codes of both the Securities and Exchange Commission (SEC) and the Central Bank of Nigeria (CBN), gave impetus for the development of corporate governance structure, to ensure transparency, accountability, probity, integrity and fairness in the management and control of the public corporations, and thereby creating value for the shareholders and stakeholders. Major challenges which required urgent attention to enhance the effectiveness of the system were noted thus: making the voluntary codes mandatory; developing more effective mechanisms for monitoring compliance and enforcement; developing strong internal control mechanisms to checkmate the boards oversight responsibility; crafting strategies to enhance shareholders activism and the extension of the codes to state-owned enterprises with more cases of corporate governance abuses.

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Development of Corporate Governance Standards in UK: The Higgs Report

Voprosy Ekonomiki ◽

10.32609/0042-8736-2004-1-118-128 ◽

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.

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The Critical Analysis of Some Comparative Eastern Africa Corporate Governance Standards After Financial Crisis, Corporate Scandals and Manipulation

International Journal For Research In Business, Management And Accounting (ISSN: 2455-6114) ◽

10.53555/bma.v1i1.1670 ◽

2021 ◽

Vol 1 (1) ◽

pp. 54-63

Author(s):

Dinh Tran Ngoc Huy

Keyword(s):

Corporate Governance ◽

Internal Control ◽

Eastern Africa ◽

Governance System ◽

Corporate Scandals ◽

Corporate Governance System ◽

Policy Suggestions ◽

Internal Control System ◽

Group 2 ◽

Group 1

Even though corporate scandals and bankruptcy in US and Europe and Asia show some certain evidence on weak corporate governance, weak internal control system and weak audit, Global corporate governance forum noted corporate governance has become an issue of worldwide importance. Therefore, this paper chooses a different analytical approach and among its aims is to give some systematic opinions.First, it classifies Eastern Africa representative corporate governance (CG) standards into two (2) groups: Malawi and Kenya latest CG principles covered in group 1 and, group 2, including corporate governance guidelines from EVCA 2005, so-called relative good CGgroup, while it uses ACCA and CFA principles as reference. Second, it , through analysis, shows differences between above set of standards which are and have been used as reference principles for many relevant organizations. Third, it establishes a selected comparative set of standards for Eastern Africa representative corporate governance system in accordance to international standards.Last but not least, this paper covers some ideas and policy suggestions.

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Capital Structure, Agency Cost and Corporate Governance: Theoretical Linkages under the Operational Framework of a Modern Company

International Business & Economics Studies ◽

10.22158/ibes.v1n2p140 ◽

2019 ◽

Vol 1 (2) ◽

pp. p140

Author(s):

Zacharias Bragoudakis

Keyword(s):

Corporate Governance ◽

Internal Friction ◽

Capital Structure ◽

Interaction Mechanism ◽

Analytical Framework ◽

Agency Cost ◽

Governance System ◽

Company Value ◽

Corporate Governance System ◽

Executive Managers

The purpose of this paper is to explain the interaction mechanism between the capital structure of a modern company, the implying agency cost that is raised when the company is expanding and the corporate governance system that should be implemented in order to achieve a smoothness of the implied internal friction. The corporate governance experience suggests that there is a lack of a systemic management at those problems. The above corporate problems reduce the maximization of the company value. It is argued that the failure to maximize the value of the company can be attributed to the endogenous weakness of corporate interconnection. This paper analyses the theory of corporate interconnection between its agents (shareholders, executive managers and bondholders), contributes to a better understanding of those issues and propose some ideas of addressing them though a systematical and analytical framework.

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