1 / 8

The Role of the Board in the Governance of the Company

The Role of the Board in the Governance of the Company. OECD Roundtable on Corporate Governance Koh Boon Hwee 4 April 2001. Factors impacting Governance. Corporate legal framework Disclosure standards Activism of institutional shareholders Market for corporate control

ishi
Download Presentation

The Role of the Board in the Governance of the Company

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. The Role of the Boardin the Governance of the Company OECD Roundtable on Corporate Governance Koh Boon Hwee 4 April 2001

  2. Factors impacting Governance • Corporate legal framework • Disclosure standards • Activism of institutional shareholders • Market for corporate control • Financial media and analysts • Civil recourse for shareholders

  3. The Board is the Key • Good Governance cannot be imposed from the outside • It must come also from within • Hence the board, at the apex of a company’s corporate governance structure, is the key

  4. Asian Boards • Founding families still in control of management • External governance mechanisms are relatively weak • Cultural attitude towards management role

  5. Key Roles of the Asian Board • Maintaining a process for self renewal that ensures continuing independence • Reviewing succession plans and compensation plans for management • Scrutinizing related party transactions or the way projects are directed to private enterprises.

  6. Government sets the framework • Change comes only when there is some impetus • Only government can lay the foundation

  7. Striking a balance • Strategy and oversight vs Operations and details • Form vs Substance • Conformance vs Performance

  8. Conclusion • No hard evidence to link corporate governance to corporate performance • Plenty of hard evidence to show that investors will pay more for companies that have good governance • The key institution for good governance is the Board • The Board is only as good as the people who form it,

More Related