Governance

Asian Development Bank Institute recently releases a new report about Corporate Governance Practice in Asia. The sample taken including Indonesia, Korea, Malaysia and Thailand. The report concluded that:
1. The Corporate governance rangkings are Malaysia, Thailand, Korea and Indonesia
2. Highest priority is the effectiveness of the boards of directors
3. Need more improvement in increasing of role from such stakeholders as employees and banks

Reading last two recommendations, we can see that the basic problem of corporate governance in Asia is refers to cultural problem. Which most of Asian company will face it within decade.

"...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;