pgcommerce

Corporate Governance   What is Corporate Governance? Corporate governance is something altogether different from the daily operational management activities enacted by a company’s executives. It is a  system  of direction and control that dictates how a  b oard of directors  governs and oversees a company. A Key Principle of Corporate Governance – Shareholder Primacy Perhaps one of the most important principles of corporate governance is the recognition of  s hareholders . The recognition is two-fold. First, there is the basic recognition of the importance of shareholders to any company – people who buy the company’s stock fund its operations. Equity is one of the major sources of funding for businesses. Second, from the basic recognition of shareholder importance follows the principle of responsibility to shareholders. The policy of allowing shareholders to elect a board of directors is critical. The board’s “prime directive” is to be always seeking the be...