Tuesday, 20 January 2015

Dimensions of Governance



There are two dimensions of Governance. Lets look at those:

Conformance or Corporate Governance
Performance or Business Governance
           Historical view
           Focuses on regulatory requirements
          Cover corporate issues such as:
·         Role of the chairman and CEO
·         Role and composition of BOD, Board Committees etc.

·         Forward looking view
·         Proactive and Business oriented approach
·         Focuses on strategy and value creation
·         About the actual results of the business

It is monitored by the audit committee
There is no dedicated oversight mechanism for performance dimension. Overall strategy is the responsibility of the full board.

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