Corporate governance
Also called: governance
The rules, structures and behaviour that make sure a company is run in the interest of all its shareholders, not just those in control.
Good governance shows in an independent and capable board, an effective audit committee, pay linked to long-term performance, fair treatment of minority shareholders and candid disclosure. In companies with a controlling promoter, the key question is often how minorities are treated.
Learn more in these lessons
- Management quality and corporate governanceHow can you judge whether a company is well run and well governed?
- Related-party transactionsWhen should related-party transactions worry a shareholder?
- Evaluating management and governance in practiceHow can you judge a company's management without ever meeting them?
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