Seminar report
Seminar Report:
A case discussed by Maria Maher and Thomas Anderson about the corporate governance and board decisions and also duties to improve performance of executives. In the United Kingdom Cadbury committee was set up in the early 1990’s. Which was following a chain of high profile corporate scandals; it was driving force for recent advances in the corporate governance framework. Board of directors was made up of an equal number of executive and non-executive directors in UK. Audit committees were suggested the intensive care role of non-executive directors in order to develop. The Cadbury committee in 1992 increases the proportion of non-executive directors. In exercise control Non-executive directors play a key role in the Cadbury. Principal-agent problem linked to a number of corporate collapses also exists and remove for protection and enforcement of shareholder rights by expert human capital to create returns on their investments. The Chairman and CEO roles diversity of experience and perspectives between the financing and the management plans of the firm features when the person who owns a firm is another from who manages or controls. Corporate governance is mainly concerned with concluding ways to arrange the interests of managers with investors. Sometime share prices are likely to decrease when board and executives mismanage duties and responsibilities to accurately implement strategies to maximize shareholder value and economic welfare projects which will enhance the company or corporation’s value and its share price in company owner’s shareholders interest. Owners of company have authority to remove inefficient executive to expense of remuneration and elect new agents or executives to act on behalf of shareholders. Voting power restricts for shareholders from voting rights as only 10% of the shares to be voted who have 40% shares. Defensive corporate control measures, the right to make decisions regarding the firing of management high levels monitoring will continue to improve things by inhibiting the market raise serious concerns for effectively relocating control decisions from owners to executives in exposing the company to the removal of dispersion. Owners do not want to penalize or fire the managers because of negative outcomes and poor performance due to a recession in country. Efficiency of executive remuneration with favorable movements in company’s stock prices, board of directors awarded more equity-based-performance. Corporate performance and economic performance accompany with various corporate governance systems.
References:
Maria and Thomas, (1999) “CORPORATE GOVERNANCE: EFFECTS ON FIRM PERFORMANCE AND ECONOMIC GROWTH”
Benjamin. M, (2011) “Corporate Governance Practices in Developing Countries:
The Case for Kenya”
http://www.sciedu.ca/journal/index.php/ijba/article/viewFile/37/42
http://www.mckinsey.com/global-themes/leadership/board-governance-depends-on-where-you-sit