As heads of firms topple left and right, a primer on good governance
The recent departures of heads of major companies raise concerns for investors, especially when exoduses are attributed to differences with boards of directors regarding strategy or the approach to the future of the business.
The roles of the significant players in the governance and the operations of a company are set out in the relevant legislation and its founding documents. Shareholders are the providers of capital and the business owners. The shareholder tasks the board with oversight and control of the company, and the CEO and management are responsible for the day-to-day operations, assisted by executives and staff...