The Board of Comvitea Ltd Appears To Be Committed To Principles of Good Corporate Governance Introduction Corporate governance comprises a model of relationship existing between a company’s management, its shareholders, board of directors and other stakeholders…
The company was established in the year 1970 and is situated in the Bay of Plenty in New Zealand. Comvita is learnt to be dedicated towards manufacturing innovative natural health care products (Comvita Limited and its subsidiaries, 2012). This discussion will attempt to gain a comprehension regarding the process of corporate governance in Comvita and the way the company manages and controls its governance aspect in relation to its business operations. Issue of Corporate Governance in New Zealand Corporate governance practices and guidelines in the business environment of New Zealand are provided utmost importance and strong emphasis. Effective corporate governance is considered to be quite necessary not only for companies operating in the public sector but is also deemed to be required for other corporate entities as well. There are certain attributes with regard to the economy of New Zealand (NZ) which represents a unique view in terms of the corporate governance debate. The facet of corporate governance of foreign countries is known to remain particularly concentrated in public listed companies but in NZ, majority of the business entities are learnt to basically focus on corporate governance for both public as well as private companies. ...
The issues are: Ethical Conduct: This comprises the code of ethics, which a company adopts as a set of behavioral corporate guidelines Board Composition and Performance: This relates to the role of independent directors and the matter regarding a company’s certification Board Committees: It pertains to the composition of committee members within a company Reporting and Disclosure: It signifies the need of quarterly information for the purpose of certification of the financial statements Remuneration: It relates to the issues regarding fundamental pay scale reimbursement of directors and executives Risk Management: This aspect involves the disclosure of financial statements Auditors: This factor relates to the element of risk associated with the nature of objectivity prevailing between an auditor and client Shareholder Relation: This facet involves the relation between shareholder, company and public Stakeholder Interest: This entails the interest of the stakeholders Corporate Governance: Comvita The board as well as executives of Comvita is supposed to be dedicated towards the execution of the business functions ethically in order to maintain the effectual standard of corporate governance (Comvita Limited and its subsidiaries, 2012). The company i.e. Comvita constantly attempts to effectively and increasingly follow the effective practices of corporate governance for their business operations. The effective practice of guidelines recognised by the company with regard to its corporate governance related approach are the ‘New Zealand Exchange (NZX) Listing Rules’, NZX corporate governance ethical practice code and the NZ ‘Securities Commission’ Corporate Governance guidelines and practices (Comvita Limited and its subsidiaries, 2012). Principle 1: Ethical ...
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Companies in recent years started giving greater emphasis on effective governance with a view to ensure competitive position, attract sufficient capital, guarantee sustainability, and combat corruptions. Corporate governance practices are associated with the development of financial markets, because higher level of governance in most countries are related to larger securities markets and lower costs of external finance (Tang and Wang, 2011, 47).
The interests of various stakeholders and shareholders were compromised by the vested interests. Roberts, McNulty and Stiles (2005) have emphasized the importance of board members of the company who are endowed with huge powers that could be easily misused.
With respect to this, it ensures that the business is conducted in accordance to ethics. Such principles should be adhered to in the decision making process while giving the right honors to the laws of the land. Fundamentally, people develop a lot of confidence and would wish to be associated with an organization that is perceived to be practicing good corporate governance.
Corporate governance actually provides a clear direction to their employees that how they have to move during their operations. The paper provides a clear description on corporate governance, that what it is actually and how it works. What are the different models for corporate governance that are provided by the scholars and different principles that are given for the board of directors Later different real examples of different firms are used by the paper to explore that either corporate governance works or not.
The British Petroleum Board and the executive management undoubtedly accept the role to drive and supervise the company in lieu of the owners. As well, the Board is committed to the concept and principle that company governance includes elemental specifications on functions and responsibilities with contemporaneous employment of diverse expertise and courses of actions.
ants in the corporation, such as, the board, managers, shareholders and other stakeholders, and spells out the rules and procedures for making decisions on corporate affairs”. By doing this, OECD (1999) explains that corporate governance likewise “provides the structure
Indeed, the highly competitive nature of emerging new models of global business has increased the risks and responsibilities of the organizations. Ticker (2009) asserts that in the contemporary environment,
Corporate governance can be understood through various frameworks of the firm. Agency theory is one of those frameworks, and entails the separation of ownership and control of an organisation. In this case,
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