 Corporate Governance Contacts |
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| SBA Related
Publications |
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| The Basics |
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Corporate Governance is concerned
with the procedures and structures that
investors, the suppliers of capital, rely
on to assure a reasonable return on their
investment. Corporate
Governance shapes the interactions between a company's
shareholders, board
of directors, and management in an environment defined
by the corporate charter,
bylaws, formal policy, and rule of law. Unlike other
corporate
stakeholders such as employees and creditors, shareholders do not
have
contractual protections; instead, the board of directors acts as an agent of
the shareholders, monitoring management in shareholders' interests.
Corporate Governance encompasses
companies' activities in
the following areas:
- Independence and expertise of candidates for the board of directors.
- Assuring the board
has sufficient information to carry out its responsibility to monitor
management.
- Mergers and
acquisitions.
- Capitalization
structure.
- Long-term business
plans.
- Shareholders' rights.
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