Corporate Governance

Corporate Governance Concept

The Anglo-Saxon expression Corporate Governance designates the way how enterprise organizations operate and act whether internally, whether before financial markets and general market. In the corporate governance structure are specified the rights and the responsibilities of the several stakeholders in the company being the administrators, managers, shareholders or others.  Being unanimous that good practices of corporate governance contribute for a better performance of the companies, several types of efforts have been developed in the sense of implementing them, especially in companies listed on stock markets.

Corporate governance relies on three fundamental pillars:

• Information: Should exist transparency and all relevant information has to become public, whether being the information referent to results, events, or any facts referent to the company with interest for the financial community (investors, shareholders, analysts) and for the community in general.
• Administration: In the company’s administration should be represented the several interests, namely the shareholders of reference, small shareholders, employees and even elements without any special bond. On the other hand, should be avoided conflicts of interest in the relation between the company’s administrators and an important part of the salary should be dependent from the obtained results.
• Control: Should exist an internal control structure composed by independent elements of the Administration (Tax Councils, Auditing Bodies, etc.) that assist the Administration Council self in the fulfillment of their responsibilities of financial information delivery, internal and external audit, internal control and application of the existent codes of conduct.