1. INTRODUCTION
Corporate governance is commonly known as the policies, practices or procedures a company implements to protect the financial interest of individuals. Publicly held companies are primary users of corporate governance because they sell stock to shareholders, who own the company. Several layers of management exist in these organizations, requiring shareholders to demand a high amount of accountability.
A well balanced framework of accountability that is based on clear communication and understanding of roles and responsibilities across the organisation. A robust performance, financial, risk and information management systems. High standards of conduct of members of the organization. Organisations with a consistent corporate governance have the ability to maintain high-quality services and improve their performance as well. Good governance in organisations when based on openness, clarity and honest accountability enhances public trust and civic engagement.
2. OBJECTIVES
Individuals who do not put the company's interest ahead of their own self-interest may be subject to dismissal. This ensures that everyone understands that punishments exist for failing to honestly and objectively inform shareholders about the company's financial health. Before investing in a company it is vital to understand what it does, its market and the industry in which it operates. You should never blindly invest in a company. Financial analysis is a process that evaluates businesses, budgets, projects, and entities for analysis purpose. It is done for the purpose of determining the suitability for investment in a business.
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There several mainly focuses on the process used to direct and manage the business and affairs of the company with the objectives of striking a balance on:
The attainment of the company's objectives.
The alignment of corporate behavior to meet the expectations of shareholders.