The Relationship Between Corporate Governance And Its Importance

752 Words 4 Pages
Introduction
Purpose:
This report will explain the definition of corporate governance and its importance. Describing the relationship to good internal control practices and explain the relationship of the two principles from ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations from the components of internal control. Evaluating how efficient the corporate governance statement of the chosen company connects facts and details about its governance and internal control practices.

I. Definition of Corporate Governance
Corporate Governance is a set of policies, systems and methods which powerhouse is performed and regulated within the business.
Governance concerns the performance of potential in associate entities.
The governance system indicates the allocation of rights and obligation among different shareholders in the organisation.
Corporate Governance is exercised by taking the balance between economic and social objectives and enclosed by particular and mutual goals.
Holm & Birkehn Laursen (2007) discuss briefly the facts about risk and control developments in Corporate Governance.
Corporate governance refers to the structure, actions and relations controlling and directing by an organisation.
Includes technique through which organisations’ objectives are organised and followed in the social,regulatory, and market environment context.
II. Importance of Corporate Governance

Good corporate governance promotes investor confidence (ASX…

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