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11 Cards in this Set
- Front
- Back
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Treasurers role in ensuring good Corp Governance |
Internal Training Auditing Monitoring Ongoing management of direct reports |
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Treasury Policies, processes and procedures |
Policies - Broad framework of organisational objectives in promoting good practice in governance and ethics. These should be within a written T policy. (Should also comply with ACT ethical code) Processes and Procedures - More detailed day-to-day application of orgz. policies will include - Internal and external reporting - Internal and external training - Controls (Audit, segregation of duties, senior management monitoring) |
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UK Corporate Governance Code |
Mainly concerned with principles for effective board. LSE listed companies must comply or explain
5 main sections
A) Leadership - BoD is responsible for LT company success. No one has unfettered powers of decision making.
B) Effectiveness - BoD has appropriate skills, experience, independence and knowledge of company to enable effective duties. Ensures info is supplied for DM in timely manner. Directors re-elected @regular intervals C) Accountability - BoD presents balanced & understandable assessment of company's position and prospects. Should identify significant risks to achieving strategic objectives. Formal and transparent arrangements for corporate reporting, risk management and internal controls D) Remuneration - Enough to obtain quality directors but not excessive. Should be linked to indiv and corp performance E) Relations with Shareholders - Ensure satisfactort dialogue with shareholders. AGM should be used. |
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What are the main provisions of the Sarbanes-Oxley Act |
-Established public company accounting oversight board to police auditing -Issued guidelines to ensure outside director and auditor independence -Definition of corporate responsibility and accountability -Requirement of accurate financial disclosures -Enhanced white collar crime penalties |
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Who does SOX apply to? |
Applies to all US public companies and any company which has debt/equity registered with the SEC |
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Why is SOX significant to Treasury? |
CEOs must verify annually that they are not zware of any violation against corp governance standards and that procedures are in place to verify acc and completeness of info Provides SH with opportunity to monitor and participate and monitor in organisation governance |
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What is the effect of SOX on treasury operations |
-Need to provide effective information reporting and transparency in the financil reporting process -Ensure policies, procedures and preventative measures are in place to control T processes (seg of duties, job rotation, security of technology) - Identify areas of risk in treasury operations |
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Difference between fraudulent and unethical activities |
Fraudulent - Breach the law/ other regulation Unethical - Commercial and financial activities should contribute to maintaining and enhancing organisation reputation |
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What are the steps to effective corporate governance in treasury |
1) secure board approval of t policies/procedures 2) draw up policies/procedures that cover all financial risks 3)lead by example 4) maintain segregation 5)enforce limits 6) carry out stress testing 7) monitor balances 8) review regularly |
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What is co-creation of value? |
CSR encompasses dual objectives, benefits for business and benefits for society. Co-creation of value is the opportunity to shared value creation through smart partnering |
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Steps to achieving co-creation of value? |
1) concentrate on CSR efforts where business has significant intereactions with 2) Build a deep understanding of benefits for both sides 3) Find the right partners Benefits should be considered based on time frame, ability to quantify and who they benefit Commitment should be long-term and led by example |
