06-04-2003, 06:00 AM
Recently in a business journal I saw an article concerning the captioned topic. I'm reproducing "S&P Score Card" which lists Four key components to consider when evaluating a company's governance standards. Those components are
1) Ownership Structure & Influence...measures the transparency of ownership structure and assesses whether the influence of major shareholders is positive, negative or neutral;
2) Financial Stakeholder rights and relations...evaluates the quality of the company's interaction with its shareholders and creditors (for example, shareholder meeting procedures) and the rights afforded to those shareholders and creditors. The impact of any anti-takeover provisions that might thwart an otherwise ligitimate takeover attempt or entrench an unsatisfactory management is also taken into consideration;
3) Financial Transparency and information Disclosure... measures the quality, accessability and timeliness of financial, audit and operational disclosures to financial stakeholders. The analysis includes evaluation of a company's public filings, annual reports, and websites;
4) Board Structure and process... evaluates the structure and effectiveness of a company's Board of directors, the role and independence of its nonemployed directors, its risk management practices, how its strategy is formulated and any pertinent remuneration and succession issues.
After reading above Four key components, probably readers might become clear about our OWN standards of "Corporate Governance".....
1) Ownership Structure & Influence...measures the transparency of ownership structure and assesses whether the influence of major shareholders is positive, negative or neutral;
2) Financial Stakeholder rights and relations...evaluates the quality of the company's interaction with its shareholders and creditors (for example, shareholder meeting procedures) and the rights afforded to those shareholders and creditors. The impact of any anti-takeover provisions that might thwart an otherwise ligitimate takeover attempt or entrench an unsatisfactory management is also taken into consideration;
3) Financial Transparency and information Disclosure... measures the quality, accessability and timeliness of financial, audit and operational disclosures to financial stakeholders. The analysis includes evaluation of a company's public filings, annual reports, and websites;
4) Board Structure and process... evaluates the structure and effectiveness of a company's Board of directors, the role and independence of its nonemployed directors, its risk management practices, how its strategy is formulated and any pertinent remuneration and succession issues.
After reading above Four key components, probably readers might become clear about our OWN standards of "Corporate Governance".....
