Corporate Governance and Compliance
Trusted Corporate Lawyer in Peterborough, Oshawa, and the Surrounding Areas
What is Corporate Governance?
Corporate governance is a system of rules, practices, and processes that directs and controls organizations and holds them accountable. It ensures that the interests of stakeholders, such as shareholders, employees, and customers, are protected. The essential elements of corporate governance include the following:
- Decision-Making: It defines the rules and responsibilities of the board of directors, executives and management.
- Accountability: A proper governance framework will ensure individuals and groups within the organization are held accountable for their actions.
- Ethical Conduct: Corporate governance establishes integrity and ethical behaviour by establishing codes of conduct, conflict-of-interest policies, and more.
The Importance of Corporate Compliance Programs
Early Issue Detection
Education and Awareness
Transparency and Accountability
How Company Boards Protect Shareholders
A board of directors must firmly commit to shareholders to maintain relationships and transparency. They achieve this through the following:
- Duties: Duties may include monitoring the company's financial health, overseeing risk management, holding higher-ups accountable, and upholding ethical standards.
- Responsibilities: Prime responsibilities include approving timely and accurate financial reports, ethical behaviour within the organization, and mediating management and shareholder disputes.
- Best Practices: The best practices for maintaining shareholder trust include clear, open communication and following established corporate governance codes and policies.
Developing Your Business’s Policies and Rules
Corporations must develop and implement essential policies, such as those for conflict of interest, codes of conduct, and security. These policies are often created through the following steps:
- Identifying organizational needs and listening to the input of board members, executives, legal counsel, and compliance officers.
- Drafting the policies to clearly define their purpose, scope, and objectives, then refining them until they are ready for review.
- Submitting the draft policy for review to board members and governance committees so they can approve or deny it.
- Communicating the new policy to the company and integrating it into daily operations and decision-making.
- Reviewing and updating the policy regularly to ensure it remains relevant and adheres to changing laws, regulations, and business needs.
Professional Risk Management and Support
About Phil Ugnat
Phil Ugnat is a seasoned corporate, commercial, and business lawyer with years of experience and a proven track record of outstanding results. From startups to massive corporations, Phil has helped countless organizations level up their success.
Contact
Toronto: 416-492-0989 ext. 123
Toll Free: 877-428-8000ext. 123