It seeks to address questions regarding how an entity is run by its board of directors, the effectiveness thereof, the completeness and correctness of its financial stewardship; the modus operandi of its internal and external accountability to shareholders, investors, regulators and, as necessary, law enforcement agencies.
Irrespective of its size and whether or not it is a public, private or not for profit organisation, every corporate organisation should have a clearly articulated corporate strategy. What is its raison d’etre? How will it achieve it? What are its critical success factors? Performance management performance methodologies?
The American management guru, Peter Drucker , opined that “you can’t manage what you can’t measure.” That notion applies in corporate governance as it does in quantitative and qualitative evaluative methodologies. In other words, the performance of a corporate entity has to be evaluated to ensure alignment with its strategic goals, budgetary allocations in the case of public entities, and within the boundaries of delegations positively accorded the Board by its shareholders.
Majority of the organisations, which outlasted the pandemic and have remained buoyant today, are those, which had, successfully executed and have sustained robust business continuity systems and highly effective corporate governance processes. Section 120 of the Companies and Allied Matters Act 2020 imposes reporting obligations on persons with substantial shareholdings in public companies. It provides at 120 , that “a person who is a substantial shareholder in a public company shall give notice in writing to the company stating his name, address and full particulars of the shares held by him or his nominee by virtue of which he is a substantial shareholder.