Corporate Governance in the Private Sector Enterprises (PSEs):
The basic principles of good CG for the PSs are identified as involving47:
- Appropriate disclosure
- The development of codes of conduct for company directors, and the
- Development of internal structures which provide for independent review of processes and decision making within a company.
Ensuring the basis for an effective corporate governance framework: The CG framework should promote transparent and efficient markets, be consistent with the rule of law and clearly articulate the division of responsibilities among different supervisory, regulatory and enforcement authorities. The rights of shareholders and key ownership functions: The CG framework should protect and facilitate the exercise of shareholders’ rights. The equitable treatment of shareholders: The CG framework should ensure the equitable treatment of all shareholders, including minority and foreign shareholders. All shareholders should have the opportunity to obtain effective redress for violation of their rights. The role of stakeholders in corporate governance: The CG framework should ensure behavior and the rights of stakeholders established by law or through mutual agreements and encourage active co-operation between corporations and stakeholders in creating wealth, jobs, and the sustainability of financially sound enterprises. Disclosure and transparency: The CG framework should ensure that timely and accurate disclosure is made on all material matters regarding the corporation, including the financial situation, performance, ownership, and governance of the company. The responsibilities of the board: The CG framework should ensure the strategic guidance of the company, the effective monitoring of management by the board, and the board’s accountability to the company and the shareholders.