Essay on The Principles Of Corporate Governance
The main bedrock of any successful economic unit( individual, firm ) be it private or public is to have an effective and efficient corporate governance system in place. There should be proper separation of power between the chairman, the managing director, the board of directors etc. Corporate governance can be defined as the process by which business organizations are managed and controlled. It can also be described as the process by which the management team of a business act independently i.e. there is clear separation of power without conflict of interest.
Most questions people often ask is that are companies applying the principles of corporate governance in running the affairs of the business?, are private organizations adhering strictly to the ethics of governance?. Corporate governance in Nigeria has been a major subject of discussion if not concern both domestically and internationally. Most private companies in Nigeria don’t follow the principle of corporate governance , there is no clear and vivid separation of power between the board of directors, the Managing director and the shareholders. There are always conflict of interest among the management team of an organization.