Asia Good Corporate Governance Ranking 2008

"...Corporate governance can therefore be defined as: a set of rules that define the relationship between shareholders, managers, creditors, the government, employees and other internal and external stakeholders in respect to their rights and responsibilities, or the system by which companies are directed and controlled.."
Cadbury Committee of United Kingdom

International principles for corporate governance are emerging. These principles cover:

1. The rights of shareholders, who should be timely and properly informed about the company, who should be able to participate in decisions concerning fundamental corporate changes, and who should share in the profits of the company;

2. Equitable treatment of shareholders, especially minority and foreign shareholders, with full disclosure of material information and prohibit abusive self dealing and insider trading;

3. The role of stakeholders should be recognized as established by law and active co-operation between corporations and stakeholders in creating wealth, jobs and financially sound enterprises;

4. Timely and accurate disclosure and transparency on all matters material to company performance, ownership and its stakeholders;

5. The responsibilities of the board in the management, the supervision of the management and the accountability to the company and shareholders.

The government plays an important supporting role by issuing and enforcing adequate regulation on for instance company registration, disclosure of financial company data and rules on the responsibilities of commissioners and directors. The company however has the prime responsibility for implementing a system of good corporate governance within the company. The company should recognize the importance that a system of good corporate governance has for the interests of its shareholders, its financiers and its employees, and therefore, for the company itself. Companies should anticipate stronger enforcement of existing laws and regulations, the introduction of new regulations and increasingly strong public scrutiny over their actions.

Read Also:
Asia Money report for Asia Good Corporate Governance Ranking
http://www.asiamoney.com