Introduction
The rules and regulations I am going to discuss is helpful in evaluating and improving the legal institutional and regulatory frame work for corporate governance in deferent organizations and provide suggestions for stock exchanges, investors, corporations and other parties, that have role in the process of developing good corporate governance. Our focus is on mostly publicly traded companies financial and non financial and it will also be a useful tool to improve corporate governance in non traded companies for example private and state owned enterprises
Corporate Governance is one key element in improving economic efficiency and growth as will as enhance the investor confidence. Corporate governance involves a set of relationship between a company management, its board, its shareholders, and other stake holders. Corporate governance also provide the structure through which the objective of the company are set, and the means of attaining those objectives and monitoring performance are determine
Good corporate governance should provide proper incentives for the board and management to pursue objectives ,that are in the interest of company and its shareholder and should facilitate effective monitoring .A good corporate governance system in the individual company or across an economy as whole ,helps to provide a degree of confidence that is necessary for the proper functioning of market economy as a result cost of capital is lower of the firm and firms are encouraged to use resources more efficiently
Corporate governance is part of large economic context:
Corporate governance is part of large economic context in which firms operate ,for example macroeconomic polices and the degree of competition in product and factor markets ...