Corporate governance broadly refers to the set of rules and frameworks of an organization that establish, guide and govern the relationships, rights, and obligations of the different actors within the organization, and often those outside the organization to a certain degree. From a business standpoint, the object of corporate governance is to promote efficiency, prudence and entrepreneurship in the management and operations of a company.
In a rapidly globalizing world, with ever increasing negative corporate publicity, concerns of organizational credibility and legitimacy are of greater concern than ever before. A well defined corporate governance framework can boost the reputation of an an organization in the eyes of outside stakeholders and even on the world stage. Internal rules also discourage bad behavour and ensure that the interests of inside actors are better aligned towards achieving organizational objectives.
Corporate governance codes also play a role in risk management. When a firm has well defined internal processess and has complied with them, a record is created which may be utilized to withstand governmental inquisition or scrutiny, and thereby serve to protect owners, shareholders and managers.
James Hsui, PLLC can help you craft the corporate governance rules and frameworks your organization may need. Such materials may include management structures, internal rules and regulations, codes of ethics, preparation of board committee and advisory board terms of reference and bylaws, and board materials and minutes. We can also advise as to the fiduciary duties of directors, officers and other agents of the organization.