Question

1) What should be consider the principles of good corporate governance practices? Please develop a set of principles for BOD to exercise good governance practices. List at least 10, without repeating the example below. ​

Example: ​The board approves corporate strategies that are intended to build sustainable long-term value.​

2) What are some governance problems corporations are facing today? Please list at least 10 common corporate governance problems, besides the example below.​

Example:   Lack of board independence.​

Answer 1

Set of principles considered by Board of directors to exercise good corporate governance :

Board members should be informed and act ethically and in good faith, with due diligence and care, in the best interest of the company and the shareholders.

Review and guide corporate strategy, objective setting, major plans of action, risk policy, capital plans, and annual budgets.

Oversee major acquisitions and divestitures.
Select, compensate, monitor and replace key executives and oversee succession planning.

Align key executive and board remuneration (pay) with the longer-term interests of the company and its shareholders.

Ensure a formal and transparent board member nomination and election process.

Ensure the integrity of the corporation's accounting and financial reporting systems, including their independent audit.

Ensure appropriate systems of internal control are established.

Oversee the process of disclosure and communications.

Where committees of the board are established, their mandate, composition and working procedures should be well-defined and disclosed.

Some governance Problems that corporations are facing today:

1.Getting the board right.
2.Performance evaluation of directors.
3.True independence of directors.
4.Removal of independent directors.
5.Accountability to stakeholders.
6.Executive compensation.
7.Founders control and succession planning.
8.Risk management.
9.Privacy and data protection.
10.Training of directors.

I hope the above information provided will be helpful to you.

Thank you.