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Public Companies

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Corporate governance within listed companies is shaped by external and internal factors.

External factors

  • Listed companies will have to follow a code on corporate governance issued by their relevant exchange or regulator. The code may be mandatory, best practice, rules based or principles based.Most corporate governance codes have common themes – there is more overlap than divergence between codes. In our experience there are always areas on which a listed company can improve its compliance with the relevant corporate governance codes.
  • Listed companies are subject to extensive corporate laws. These are mandatory.
  • A myriad of stakeholders will have expectations including potential investors, employees, shareholders, law-makers, creditors, suppliers, the media and special interest groups. Many of these fall under the label of ESG/ CSR. These stakeholders can resort to litigation, prosecution and/or hostile reputational campaigns if corporate governance expectations are not met. They are overlooked at a company’s peril.

Internal factors

  • Board: Is the board setting the appropriate tone from the top on risk management, performance measurement and internal controls? Is there a balanced pursuit of profit, culture and values?
  • Internal policies: How effective are the existing risk management and internal controls?
  • Culture of organization, country and business sector: What standards of behaviour prevail and what standards are desirable? What values exist? What respect is given to the code of conduct? What has been reported through whistleblowing?
  • Employee awareness: Are employees aware of key risk and control polices, codes of conduct and significant relevant domestic and foreign legislation, such as US Foreign & Corrupt Practices Act and UK Bribery Act?
  • Training: What is the company’s attitude to training and development? What steps are taken to ensure all relevant employees have knowledge and understanding of internal policies, procedures, the company’s values, etc?

Majlis Partners has the skills and expertise to deliver pre-emptive solutions to these issues thereby avoiding problems arising. Our corporate governance tool kit will allow companies to take a fast track to corporate governance best practice.

For more information please contact the Corporate Governance Department of Majlis Partners