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CORPORATE GOVERNANCE - Coggle Diagram
CORPORATE GOVERNANCE
Committees
Remuneration Committee (NED) : No director should be involve in setting up their own pay. NED decide the payment by doing benchmark to similar company (same industry) and similar sized company.
Nomination Company (NED) : they nominate who is going to be the ED. ED can't be part of this committee because it's likely that they can choose their own friend/family that they can control.
Audit Committee (at least 3 NED) : since the ED who is preparing the financial statement, then the ED can't be part of the audit committee. the 3 or more NED liaise with the external auditor
Risk Committee : is the risk management and the one who is responsible to designs the control is the director's responsibility to design and implement and the auditor's role is to assess the effectiveness of the controls
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Non-Executive Directors
Takes the..
People : they involves in the remuneration and nomination committee. they choose the ED, they decide how much is the salary of the ED,
Internal Control and Risk : They involve heavily in deciding the right control and risk is assess properly.
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Strategy : they work with the ED to make sure that the strategy of the company is address correctly and in place.
Shareholders own the company and control the company with voting power and Directors is the one who controls the company in day-to-day basis. There's a separation of ownership and control is being focused in big company that is listed in the stock exchange