The most important thing is how directors and management can establish a governance model, which is a value that other company participants can rely on and evaluate its effectiveness regularly and effectively. In particular, senior managers are honest and ethical, especially when facing conflicts of interest and disclosing financial statements.
Common principles of corporate governance include:
Fair treatment of rights and shareholders: the organization should respect the rights of shareholders, help them exercise their rights through effective communication, let shareholders better understand the content and encourage them to attend daily meetings;
Interests of other stakeholders: organizations should be aware that they have legal and other obligations to all legitimate stakeholders;
Roles and responsibilities of the board of directors: the board of directors needs a series of skills to deal with various business problems, has the ability to check and challenge the performance of management, and has an appropriate degree of commitment to the work. However, the chairman and CEO cannot be held by the same person, which can systematically avoid conflicts of interest. In addition, the number of executive directors and independent non-executive directors should be appropriate to establish an independent supervisory role;
Integrity and ethical behavior: the company needs to establish ethical standards for directors and executives to encourage morality and responsibility in decision-making;
Disclosure and transparency: the company should clarify and let the public know the role and responsibility of the board of directors.
On the principles of corporate governance;
Supervise the preparation of personal financial accounts
Internal control and independent auditors
Review the remuneration arrangements of the CEO and other senior managers.
Nomination methods for board positions
Resources available to the board of directors
Supervision and risk management
Dividend distribution policy