Essay about Corporate Governance Sample

4341 Words Feb 26th, 2012 18 Pages

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Private Sector Corporate Governance Trust
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Principles of Good Corporate Governance Sample Code for Best Practice for Corporate Governance in Kenya

(This sample Code is intended to assist companies develop their own governance codes and is neither prescriptive nor mandatory)

Authority and Duties of Shareholders
Shareholders of the company shall jointly and severally protect, preserve and actively exercise the supreme authority of the company in general meetings. They have a duty, jointly and severally, to exercise that supreme authority to: ♦ Ensure that only competent and
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In Order to fulfill these functions, the Board of Directors shall: ♦ Meet regularly and retain full and effective control over the company. ♦ Evolve procedures for the selection and removal of individual directors (including the chairman and chief executive) to facilitate regular alteration of the mix and composition of the Board ensuring relevant rejuvenation. ♦ Define the limits of authority of the Chief Executive and other top executives. ♦ Compile and communicate company policies, strategies etc. covering style of operation; external and internal relationships; markets and business; required rates of return and performance standards; growth and change policies; planning and budgetary procedures. ♦ Review and approve strategic plans and arrange that meaningful plans are produced at all levels on an on-going basis covering the longest realistic time-scale. ♦ Determine the (actual and potential) total resources of the company in terms of men, money, methods, equipment etc. and market position, and allocate these by unit and

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