Nowadays Corporate Governance is as important as an efficient financial performance. Some experts indicate that nearly 80% of investors would pay more for a company with Good Corporate Governance; since this provides greater security to your investment by ensuring sound corporate practices. The greater the transparency and the volume of information, the greater the investor confidence in the market. Consequently, Corporate Governance, far from being a fashion, should be considered as a necessary practice for the sustainability and growth of companies.
The framework of good Corporate Governance should contain at a minimum the following elements:
- Protect the rights of shareholders.
- Ensure equitable treatment for all shareholders, including minority and foreign shareholders.
- All shareholders should have the opportunity of obtaining an effective relief for damages due to breach of their rights.
- Acknowledge the rights of interested third parties and promote an active cooperation between them and corporation regarding wealth creation, jobs generation and achieving sustainable financial enterprises.
- Ensure adequate and timely disclosure of all relevant business issues, including financial situation, performance, ownership and management.
- Ensure the strategic guidance of the company, the effective monitoring of the management team by the Board of Directors and the responsibilities of the Board of Directors with its shareholders.
In RSM Colombia we can help you to implement such Corporate Governance best practices.