Gorporate Governanace Advisor for case PowerPoint Presentation

Gorporate Governanace Advisor for case - PowerPoint Presentation Example All these aspects of cooperate governance help in decision making capabilities. The decisions that the board have been making from the point of insufficient information and without due regard to either the risks or the environmental, social, and corporate governance issues involved. It is necessary to advice them on the growing importance of governance issues. It is imperative for the role of the good governance in corporate performance, and maximization of share holders’ value and the protection of investor’s rights. The decision by the board to invest a large amount of money which was raised primarily by bank loans, in developing a residential area by constructing homes, villas, a five star hotel recreational site and other required sites are informed by this lack of informed decision on corporate governance. The board should be advised that, the main objective of corporate governance is to reinforce a company, and encourage the standards of self rule so that the intensity of governance is in line with other domestic and international practices. It helps in the responsibility of handling money and the conduct of commercial activities. The serious concerns about the environmental impact of the construction plans and a very high probability that the project will be banned by the government’s Real Estate Standards Agency and the eventuality of the board cancelling the project, with a write off of the expenditure already incurred. This was possible to avoid, if cooperate governance was in place, as the scales of trade, and the size of companies’ bureaucracies’ involved makes it harder for individual control, and makes regulation externally by all the government agencies involved before a project can commence. To avoid the spread of failures corporate governance has come in handy for most companies in economies which are