There are two dimensions of Governance. Lets look at those:
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Conformance or Corporate Governance
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Performance or Business Governance
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Historical view
Focuses on regulatory requirements
Cover corporate issues such as:
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Role of the chairman and CEO
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Role and composition of BOD, Board Committees
etc.
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Forward looking view
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Proactive and Business oriented approach
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Focuses on strategy and value creation
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About the actual results of the business
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It is monitored by the audit committee
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There is no dedicated oversight mechanism for performance dimension.
Overall strategy is the responsibility of the full board.
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