Define Corporate governance Identify and discuss with examples the
principles of Good Governance as per OECD. Explain the difference
between governance and management. What are the fundamental
differences between the Shareholders theory and the stakeholder theory.
What are the fundamental differences between the agency theory and the
Stewardship theory. Explain the different models of corporate governance.
Make a critical differences between the functions of the Board and the
functions of the Management. Identify the key qualities of Board Members
Explain the relationship between: Board and Shareholders; Board and
Management: Shareholders and Management. Identify the key benefits of
Good Corporate Governance. Identify the key factors determining the
effectiveness of the board. Make a critical review of the Tanzania
Guidelines on Corporate Governance and make a summary of key matters
therein. Show the extent of compliance to the guidelines among the State
owned Corporation Describe the need for the formation of committees in
the governing board and identify the most important committees that must
be formed within the governing board of a corporation; state owned
corporations (Local Government Councils; Parliament, and state owned
Institutions)
Sure, I can help you with that. Here are the answers to your questions:
Define Corporate governance
Corporate governance is the system of rules, practices, and processes by which a
company is directed and controlled. It is concerned with the way in which power and
authority are distributed within a company, and how decisions are made. Corporate
governance is important because it helps to ensure that companies are managed in a
way that is in the best interests of all stakeholders, including shareholders, employees,
customers, and the community.
Identify and discuss with examples the principles of Good Governance as per OECD.
The OECD Principles of Corporate Governance are a set of 6 principles that are
designed to help companies improve their corporate governance practices. The
principles are:
Board of directors: The board of directors should be responsible for the overall
governance of the company. It should be composed of a sufficient number of
independent and qualified directors who are able to exercise independent judgment.
Integrity and ethical behavior: The company should promote integrity and ethical
behavior among its directors, officers, and employees.
Transparency: The company should provide timely and accurate information to its
shareholders and other stakeholders.
Accountability: The company should be accountable to its shareholders and other
stakeholders for its actions.
Efficiency and effectiveness: The company should be managed efficiently and effectively.
Risk management: The company should identify, assess, and manage its risks.
Some examples of how companies can implement these principles include:
The board of directors can establish a code of conduct for all employees that outlines the
company's expectations for ethical behavior.
The company can create a whistleblowing policy that allows employees to report
suspected wrongdoing anonymously.
The company can publish an annual report that includes financial information, as well as
information about the company's environmental and social performance.
The company can establish a system of internal controls to help identify and prevent
fraud and other financial irregularities.
Explain the difference between governance and management.
Governance is the system of rules, practices, and processes by which a company is
directed and controlled. Management is the day-to-day running of the company. The
board of directors is responsible for governance, while the management team is
responsible for management.
What are the fundamental differences between the Shareholders theory and the
stakeholder theory.
The shareholders theory of corporate governance holds that the primary purpose of a
company is to maximize shareholder value. The stakeholder theory of corporate
governance holds that companies should consider the interests of all stakeholders,
including shareholders, employees, customers, and the community.
The fundamental difference between the two theories is that the shareholders theory
focuses on the interests of one group of stakeholders (shareholders), while the
stakeholder theory focuses on the interests of all stakeholders.
What are the fundamental differences between the agency theory and the Stewardship
theory.
The agency theory of corporate governance holds that managers are agents of
shareholders and that they have a fiduciary duty to act in the best interests of
shareholders. The stewardship theory of corporate governance holds that managers are
stewards of the company and that they have a responsibility to act in the best interests
of all stakeholders.
The fundamental difference between the two theories is that the agency theory sees
managers as having a conflict of interest with shareholders, while the stewardship
theory sees managers as having a shared interest with shareholders.
Explain the different models of corporate governance.
There are three main models of corporate governance:
The Anglo-American model is characterized by a separation of ownership and control.
Shareholders own the company, but they do not manage it. The board of directors is
responsible for overseeing the management of the company.
The Continental European model is characterized by a concentration of ownership. A
small number of shareholders, typically families or banks, own a large percentage of the
company's shares. The board of directors is typically composed of representatives of the
major shareholders.
The Japanese model is characterized by a system of interlocking directorates.
Companies are linked together by a network of directors who sit on the boards of several
different companies. This system is designed to promote cooperation and coordination
between companies.
Make a critical differences between the functions of the Board and the functions of the
Management.
The board of directors has two main functions:
Governance: The board is responsible for setting the company's strategic direction,
overseeing the management of the company, and ensuring that the company is
managed in a way that is in the best interests of all stakeholders.
Representation: The board represents the interests of the company's shareholders. It is
responsible for ensuring that the company is managed in a way that maximizes
shareholder value.
The management team has three main functions:
Operational management: The management team is responsible for the day-to-day
running of the company. It is responsible for implementing the board'
Define Corporate governance Identify and discuss with examples the
principles of Good Governance as per OECD. Explain the difference
between governance and management. What are the fundamental
differences between the Shareholders theory and the stakeholder theory.
What are the fundamental differences between the agency theory and the
Stewardship theory. Explain the different models of corporate governance.
Make a critical differences between the functions of the Board and the
functions of the Management. Identify the key qualities of Board Members
Explain the relationship between: Board and Shareholders; Board and
Management: Shareholders and Management. Identify the key benefits of
Good Corporate Governance. Identify the key factors determining the
effectiveness of the board. Make a critical review of the Tanzania
Guidelines on Corporate Governance and make a summary of key matters
therein. Show the extent of compliance to the guidelines among the State
owned Corporation Describe the need for the formation of committees in
the governing board and identify the most important committees that must
be formed within the governing board of a corporation; state owned
corporations (Local Government Councils; Parliament, and state owned
Institutions)
Sure, I can help you with that. Here are the answers to your questions:
Define Corporate governance
Corporate governance is the system of rules, practices, and processes by which a
company is directed and controlled. It is concerned with the way in which power and
authority are distributed within a company, and how decisions are made. Corporate
governance is important because it helps to ensure that companies are managed in a
way that is in the best interests of all stakeholders, including shareholders, employees,
customers, and the community.
Identify and discuss with examples the principles of Good Governance as per OECD.
The OECD Principles of Corporate Governance are a set of 6 principles that are
designed to help companies improve their corporate governance practices. The
principles are:
Board of directors: The board of directors should be responsible for the overall
governance of the company. It should be composed of a sufficient number of
independent and qualified directors who are able to exercise independent judgment.
Integrity and ethical behavior: The company should promote integrity and ethical
behavior among its directors, officers, and employees.
Transparency: The company should provide timely and accurate information to its
shareholders and other stakeholders.
Accountability: The company should be accountable to its shareholders and other
stakeholders for its actions.
Efficiency and effectiveness: The company should be managed efficiently and effectively.
Risk management: The company should identify, assess, and manage its risks.
Some examples of how companies can implement these principles include:
The board of directors can establish a code of conduct for all employees that outlines the
company's expectations for ethical behavior.
The company can create a whistleblowing policy that allows employees to report
suspected wrongdoing anonymously.
The company can publish an annual report that includes financial information, as well as
information about the company's environmental and social performance.
The company can establish a system of internal controls to help identify and prevent
fraud and other financial irregularities.
Explain the difference between governance and management.
Governance is the system of rules, practices, and processes by which a company is
directed and controlled. Management is the day-to-day running of the company. The
board of directors is responsible for governance, while the management team is
responsible for management.
What are the fundamental differences between the Shareholders theory and the
stakeholder theory.
The shareholders theory of corporate governance holds that the primary purpose of a
company is to maximize shareholder value. The stakeholder theory of corporate
governance holds that companies should consider the interests of all stakeholders,
including shareholders, employees, customers, and the community.
The fundamental difference between the two theories is that the shareholders theory
focuses on the interests of one group of stakeholders (shareholders), while the
stakeholder theory focuses on the interests of all stakeholders.
What are the fundamental differences between the agency theory and the Stewardship
theory.
The agency theory of corporate governance holds that managers are agents of
shareholders and that they have a fiduciary duty to act in the best interests of
shareholders. The stewardship theory of corporate governance holds that managers are
stewards of the company and that they have a responsibility to act in the best interests
of all stakeholders.
The fundamental difference between the two theories is that the agency theory sees
managers as having a conflict of interest with shareholders, while the stewardship
theory sees managers as having a shared interest with shareholders.
Explain the different models of corporate governance.
There are three main models of corporate governance:
The Anglo-American model is characterized by a separation of ownership and control.
Shareholders own the company, but they do not manage it. The board of directors is
responsible for overseeing the management of the company.
The Continental European model is characterized by a concentration of ownership. A
small number of shareholders, typically families or banks, own a large percentage of the
company's shares. The board of directors is typically composed of representatives of the
major shareholders.
The Japanese model is characterized by a system of interlocking directorates.
Companies are linked together by a network of directors who sit on the boards of several
different companies. This system is designed to promote cooperation and coordination
between companies.
Make a critical differences between the functions of the Board and the functions of the
Management.
The board of directors has two main functions:
Governance: The board is responsible for setting the company's strategic direction,
overseeing the management of the company, and ensuring that the company is
managed in a way that is in the best interests of all stakeholders.
Representation: The board represents the interests of the company's shareholders. It is
responsible for ensuring that the company is managed in a way that maximizes
shareholder value.
The management team has three main functions:
Operational management: The management team is responsible for the day-to-day
running of the company. It is responsible for implementing the board'
Make a critical differences between the functions of the Board and the
functions of the Management. Identify the key qualities of Board Members
Explain the relationship between: Board and Shareholders; Board and
Management: Shareholders and Management. Identify the key benefits of
Good Corporate Governance. Identify the key factors determining the
effectiveness of the board. Make a critical review of the Tanzania
Guidelines on Corporate Governance and make a summary of key matters
therein. Show the extent of compliance to the guidelines among the State
owned Corporation Describe the need for the formation of committees in
the governing board and identify the most important committees that must
be formed within the governing board of a corporation; state owned
corporations (Local Government Councils; Parliament, and state owned
Institutions)
Here are my answers to your questions:
Make a critical differences between the functions of the Board and the functions of the
Management.
The board of directors and the management team are two of the most important groups
of people in any company. They have different roles and responsibilities, but they both
play a vital part in the success of the company.
The board of directors is responsible for setting the company's strategic direction,
overseeing the management of the company, and ensuring that the company is
managed in a way that is in the best interests of all stakeholders. The management
team is responsible for the day-to-day running of the company. It is responsible for
implementing the board's strategic direction and for ensuring that the company is
operating efficiently and effectively.
Here is a table that summarizes the key differences between the functions of the board
and the management team:
Board of Management
Function
Directors Team
Set the
company's
Yes No
strategic
direction
Oversee the
management
Yes No
of the
company
Ensure that
the company
is managed
in a way that
Yes No
is in the best
interests of
all
stakeholders
Implement
the board's
No Yes
strategic
direction
Ensure that No Yes
the company
is operating
efficiently
and
effectively
Identify the key qualities of Board Members
The following are some of the key qualities that board members should possess:
Integrity: Board members should be honest and ethical. They should act in the best
interests of the company and its stakeholders.
Diligence: Board members should be diligent in their duties. They should be prepared for
board meetings and should ask questions to ensure that they understand the issues
being discussed.
Independence: Board members should be independent from management. They should
not have any financial or personal ties to management that could influence their
decision-making.
Accountability: Board members should be accountable for their actions. They should be
willing to answer questions from shareholders and other stakeholders.
Commitment: Board members should be committed to the company. They should be
willing to devote the time and effort necessary to fulfill their duties.
Explain the relationship between: Board and Shareholders; Board and Management:
Shareholders and Management.
The board of directors is responsible for representing the interests of the company's
shareholders. It is important for the board to maintain a strong relationship with
shareholders so that it can understand their needs and concerns. The board should also
communicate regularly with shareholders to keep them informed about the company's
performance and to solicit their feedback.
The board of directors also has a relationship with the management team. The board is
responsible for overseeing the management of the company and ensuring that the
management team is acting in the best interests of the shareholders. The board should
work with the management team to develop and implement strategies that will help the
company achieve its goals.
Finally, there is a relationship between shareholders and management. Shareholders
are the owners of the company and they have a right to expect that the management
team will act in their best interests. Management should be responsive to the needs and
concerns of shareholders and should work to create value for them.
Identify the key benefits of Good Corporate Governance.
Good corporate governance can provide a number of benefits for companies, including:
Increased shareholder value: Good corporate governance can help to increase
shareholder value by ensuring that the company is managed in a way that is in the best
interests of shareholders.
Improved risk management: Good corporate governance can help to improve risk
management by ensuring that the company has a strong system in place for identifying,
assessing, and managing risks.
Enhanced reputation: Good corporate governance can help to enhance the company's
reputation by demonstrating that the company is committed to ethical and responsible
behavior.
Increased access to capital: Good corporate governance can help to increase the
company's access to capital by making it more attractive to investors.
Improved employee morale: Good corporate governance can help to improve employee
morale by creating a more transparent and accountable work environment.
Identify the key factors determining the effectiveness of the board.
There are a number of factors that can determine the effectiveness of the board,
including:
The composition of the board: The board should be composed of a diverse group of
individuals with a variety of skills and experience.
The independence of the board: The board should be independent from management
and should not have any financial or personal ties to management that could influence
their decision-making.
The board's commitment to good corporate governance: The board should be committed
to good corporate governance and should have a clear understanding of its
responsibilities.
The board's ability to work effectively with management: The board should be able to
work effectively with management to develop and implement strategies that will help the
company achieve its goals.
Make a critical review of the Tanzania Guidelines on Corporate Governance
and make a summary of key matters therein. Show the extent of
compliance to the guidelines among the State owned Corporation Describe
the need for the formation of committees in the governing board and
identify the most important committees that must be formed within the
governing board of a corporation; state owned corporations (Local
Government Councils; Parliament, and state owned Institutions
The Tanzania Guidelines on Corporate Governance (TGOC) are a set of principles and
best practices that are designed to help companies improve their corporate governance.
The TGOC were developed by the Tanzanian government in collaboration with the
private sector and civil society.
The TGOC are divided into four main sections:
The Board of Directors: This section sets out the responsibilities of the board of directors
and provides guidance on how to select and appoint directors, how to ensure that the
board is independent, and how to structure the board's committees.
The Management Team: This section sets out the responsibilities of the management
team and provides guidance on how to ensure that the management team is
accountable to the board.
The Shareholders: This section sets out the rights of shareholders and provides
guidance on how to ensure that shareholders are able to exercise their rights effectively.
The Stakeholders: This section sets out the responsibilities of companies to their
stakeholders and provides guidance on how to ensure that companies take into account
the interests of all stakeholders.
The TGOC are a comprehensive and well-written set of guidelines that provide valuable
guidance to companies on how to improve their corporate governance. The TGOC are
also relevant to state-owned corporations (SOEs). SOEs are often subject to political
interference and corruption, and the TGOC can help to mitigate these risks by providing
guidance on how to ensure that SOEs are managed in a transparent and accountable
manner.
The extent of compliance to the TGOC among SOEs in Tanzania varies. Some SOEs
have made significant progress in implementing the TGOC, while others have made
little or no progress. The government of Tanzania has taken some steps to promote
compliance with the TGOC, such as issuing regulations that require SOEs to comply
with the TGOC. However, more needs to be done to ensure that all SOEs comply with
the TGOC.
There are a number of reasons why SOEs may not comply with the TGOC. One reason
is that SOEs may not have the resources or expertise to implement the TGOC. Another
reason is that SOEs may be subject to political interference, which can make it difficult
to implement the TGOC. Finally, SOEs may not be aware of the TGOC or may not
understand the benefits of complying with the TGOC.
There are a number of things that can be done to improve compliance with the TGOC
among SOEs. One thing that can be done is to provide SOEs with the resources and
expertise they need to implement the TGOC. Another thing that can be done is to
reduce political interference in SOEs. Finally, SOEs can be made aware of the TGOC
and the benefits of complying with the TGOC.
The formation of committees in the governing board is important because it can help the
board to be more effective. Committees can be used to focus on specific areas of
responsibility, such as audit, risk management, and compensation. This can free up the
board to focus on its overall strategic direction.
The most important committees that must be formed within the governing board of a
corporation are:
Audit Committee: The audit committee is responsible for overseeing the company's
financial reporting and internal controls.
Risk Management Committee: The risk management committee is responsible for
overseeing the company's risk management process.
Compensation Committee: The compensation committee is responsible for setting the
company's executive compensation.
These are just a few of the most important committees that must be formed within the
governing board of a corporation. The specific committees that are formed will vary
depending on the size and complexity of the company.
