Talk:Corporate governance

Insert non-formatted text hereCopied from other page now a redirect (by 194.154.129.7) Mark Richards 23:21, 18 May 2004 (UTC)

The modern trend of developing corporate governance standards and codes of best practice began in the early 1990’s in the United Kingdom, the United States and Canada in response to numerous problems, misdoings and scandals in the corporate performance of leading public companies of these countries, caused, among other reasons, by a lack of effective control mechanisms over management. The first documents published in this area, including the Cadbury Report in the U.K., the General Motors Board of Directors Guidelines in the U.S., and the Dey Report in Canada, have each proved influential sources for similar documents in other countries. Over the past decade, good corporate governance principles and codes have been developed in different countries and issued from stock exchanges, corporations, institutional investors, or associations (institutes) of directors and managers with the support of governments and international organizations. As a rule, compliance with these governance recommendations is not mandated by law, although the codes linked to stock exchange listing requirements may have a coercive effect. For example, companies quoted on the London and Toronto Stock Exchanges formally need not follow the recommendations of their respective national codes. However, they must disclose whether they follow the recommendations in those documents and, where not, they should provide explanations concerning divergent practices. Such disclosure requirements exert a significant pressure on listed companies for compliance.

In contrast, the guidelines issued by associations of directors, corporate managers and individual companies tend to be wholly voluntary. For example, The GM Board Guidelines reflect the company’s efforts to improve its own governance capacity. Such documents, however, may have a wider multiplying effect prompting other companies to adopt similar documents and standards of best practice.

Corporate governance issues are receiving greater attention in both developed and developing countries as a result of the increasing recognition that a firm’s corporate governance affects both its economic performance and its ability to access long-term, low-cost investment capital.

According to the definition offered by the Cadbury Report, corporate governance is a system by which business corporations are directed and controlled. The corporate governance structure specifies the relations, and the distribution of rights and responsibilities, among primarily three groups of participants – the board of directors, managers, and shareholders. This system spells out the rules and procedures for making decisions on corporate affairs, it also provides the structure through which the company objectives are set, as well as the means of attaining and monitoring the performance those objectives. The fundamental concern of corporate governance is to ensure the conditions whereby a firm’s directors and managers act in the interests of the firm and its shareholders, and to ensure the means by which managers are held accountable to capital providers for the use of assets.

Snore

The above three paragraphs really put me to sleep. If someone has had their No-Doz and sees any good info there, let's put it into the article. NuclearWinner 03:14, 14 Dec 2004 (UTC)

Forget it. Copyvio from a Russian site (http://www.ricd.ru/db.php?db_id=304&l=en). Mikkalai 06:19, 14 Dec 2004 (UTC)

And half of the article itself, b.t.w.Mikkalai

Is this article getting too long?

The article seems to be getting a bit too lengthy and is becoming hard to manage. Any ideas on how it could be divided up? --Yu Ninjie 06:37, 20 Apr 2005 (UTC)