Pending professional review. This guide is awaiting review by our Chartered Accountants.
Corporate governance is the combination of laws, regulations, procedures, implicit rules and voluntary practices that help a company perform efficiently and maximise long-term value for its shareholders — while looking after other stakeholders such as customers, government and society.
Why it matters beyond listed companies
For listed companies, governance requirements are prescribed by SEBI regulations and the Companies Act. But lenders, whether national or international, also look at governance before taking an exposure to any company. As a business grows and brings in outside capital, transparency and fair dealing become part of how it is valued.
The practical building blocks
- Monitoring through periodic internal audit.
- Independent audit and verification of financial information.
- Supervision and accountability — clear roles for the board and management.
- Independent directors in sufficient number on the board, where required or desirable.
- An independent audit committee of the board.
- Disclosure and transparency in reports to shareholders and lenders.
Where to start
For most unlisted companies, the first steps are a reliable internal-audit cycle, regular board meetings with proper papers and minutes, and timely, accurate reporting. Our governance services help put these in place.