What are the most important elements that contribute to good corporate governance?
Transparency and disclosure in financial reporting are the cornerstones of good corporate governance. Timely and accurate disclosure of information about financial and operating performance is central to effective board oversight. Accountability and loyalty of the board to both the company and the shareholders are also fundamental. All shareholders must be treated fairly and equally. Above all, governance is not a box-ticking exercise and boards that treat it as such will discover this to their detriment. Boards should not usurp management’s role in running the enterprise, but they must be vigilant in monitoring and measuring management’s performance on behalf of those who have invested in the company. Independence is the board’s most critical feature because it facilitates board objectivity, required to review management activity. How can RSR Partners help? Having advised companies and assisted boards in their need for new thinking, RSR Partners is mindful of the needs of boards in tr
