A major responsibility of the Board is selecting the CEO. It must therefore ensure that it picks the right CEO and puts in place a succession plan that allows for smooth transition. With increased responsibilities and more stringent regulatory oversight, Boards need to ensure that they appoint CEOs who will allow them go to sleep […]
“Paying adequate attention to sustainability issues including environment, social, occupational and community health and safety ensures successful long-term business performance and projects the company as a responsible corporate citizen contributing to economic development.” Corporate Governance has long advanced beyond compliance and governance matters to include sustainability issues and other non-financial performance indices. According to the […]
“Full and comprehensive disclosure of all matters material to investors and stakeholders, and of matters set out in this Code, ensures proper monitoring of its implementation which engenders good corporate governance practice.” Corporate Disclosures constitute an important aspect of Corporate Governance. According to Healy and Palepu, the main aim of corporate disclosures is “to communicate […]
“The establishment of policies and mechanisms for monitoring insider trading, related party transactions, conflict of interest and other corrupt activities, mitigates the adverse effects of these abuses on the Company and promotes good ethical conduct and investor confidence” Corporate leaders have to embrace, with significant commitment, the importance of ethical culture. At the forefront of […]
A conflict of interest occurs when an individual is involved in multiple interests, one of which could possibly corrupt the motivation for an act in the other. It is inevitable that Directors will face situations of potential conflict of interest with the companies they serve. The “Agency Theory” postulates that Shareholders are principals and Management […]
“The establishment of professional business and ethical standards underscores the values for the protection and enhancement of the reputation of the Company while promoting good conduct and investor confidence.” Corporate governance is an encompassing concept that defines the way a Company or organization is managed and controlled. It prescribes a set of rules which help […]
A Director stands in a fiduciary relationship towards the company and shall observe the utmost good faith towards the company in any transaction with it or on its behalf. He/she is therefore expected to devote such time and attention as is necessary for the proper performance of his/her duties as a Director. Attendance and effective […]
“The establishment of a system of regular dialogue with shareholders balances their needs, interests and expectations with the objectives of the Company.” Principle 22, Nigerian Code of Corporate Governance, 2018 (NCCG). Shareholder engagement can be defined as a relationship building process that provides the Board of Directors and Management the opportunity to communicate with and […]
”General Meetings are important platforms for the Board to engage shareholders to facilitate greater understanding of the Company’s business, governance and performance. They provide shareholders with an opportunity to exercise their ownership rights and express their views to the Board on any areas of interest.” Principle 21 of the Nigerian Code of Corporate Governance, 2018 […]
Principle 20 of the Nigerian Code of Corporate Governance 2018 (NCCG) provides that “An external auditor is appointed to provide an independent opinion on the true and fair view of the financial statements of the Company to give assurance to stakeholders on the reliability of the financial statements.” The External Auditor is widely regarded as […]