Question

Discuss the current top governance themes? Give Opinion of the Top 3 Governance Themes

PS: In response to corporate Governance

Answer 1

The current top governance themes are :

1)Shareholders Rights

2)General Mettings

3)Takeover Defences

4)Board of directors

5)Performance evaluation, remuneration of senior management and members of the board

6)Communication with the market, shareholders and dividend policy

7)Financial Information

8)Audit

Shareholders Rights: They exercise rights by participating and voting at general meetings. Corporate governance emphasise on granting shareholders active role and full use of voting rights.Equal treatment in extent of control an individual shareholder have and financial risk to which he is exposed.

General meetings: Ensuring participatio and voting of shareholders without involving unnecessary expenses. A number of recommendations on good corporate governance stress on issuing the notice before the date of meeting, as well as describe in the notice of the matters to be considered in metting.  Corporate governance recommendations expresses that scope of such mandates should be specific and limited in terms of amount involved and period of validity.

Takeover defences: Shareholders must be advised and explained of measures taken in place to defend against takeover bids. Some recommendations on corporate governance says that shareholders should be given chance to observe takeover bids directly.