Download Understanding Corporate Governance: Protecting Individual and Collective Interests and more Slides Cooperative Governance in PDF only on Docsity! Corporate Governance A Brief Overview by Dr Safdar A Butt docsity.com 3 July 2012 2Corporate Governance - Dr S A Butt What is a Corporate Body? Any Company is a corporate body. However, in a broader sense only public limited companies are taken to be the subject matter of CG. So far the thrust of CG is only on listed companies. Greatest emphasis is on those that are controlled by closed groups. In USA and Europe, companies are even run by minority shareholders. Hence, they require even greater degree of CG. docsity.com 3 July 2012 5Corporate Governance - Dr S A Butt Opportunity to protect individual interests Managers and Employees have the greatest opportunity to protect their interest(s) Suppliers and Clients essentially go by each transaction or contract. Lenders and Shareholders are most vulnerable. Society depends entirely on law docsity.com 3 July 2012 6Corporate Governance - Dr S A Butt Individual Vs Collective Interest Interests of various stakeholders differ How to create a balance Shareholders: Share Value & Profit Management: Survival & Job Security Lenders: Debt security, low risk Society: Environmental/Economic Issues docsity.com Need for a System There is therefore a need for a system that would ensure that: Individual interest of each stakeholder is protected and served. Collective interest of all stakeholders is protected and served. No one usurps any one else’s rights. Corporate Governance is that system. 3 July 2012 7Corporate Governance - Dr S A Butt docsity.com 3 July 2012 10Corporate Governance - Dr S A Butt Governance & Management Governance Function Management Approval of Plans Planning Preparation of plans Providing overall leadership Leading Leading those who implement plans Arranging resources Organizing Tasks division & resource usage Controlling managers Controlling Controlling employees docsity.com 3 July 2012 11Corporate Governance - Dr S A Butt Governance Strategic Setting Objectives Devising plans to achieve these objectives Setting rules or parameters Not directly concerned with routine affairs Managing the managers Protection of Interests of all stakeholders docsity.com 3 July 2012 12Corporate Governance - Dr S A Butt Management Current & Operational Affairs Taking directions from the Board Implementing the Plans Developing Suggestions and Alternatives docsity.com 3 July 2012 15Corporate Governance - Dr S A Butt Approaches to Corporate Governance Shareholders’ Value Approach Enlightened Shareholders Approach Pluralist Approach docsity.com Thank you docsity.com
