An effective corporate board underpins corporate governance Coursework

An effective incorporate board underpins corporate governance. Critically discuss why this is so and what makes a board effectiv - Coursework Example bodily sectors argon therefore required to operate according to the rules and policies of the corporate governance for better growth as well as doing of transp arent and responsible business functions. It also facilitates companies to conduct its business trading operations in accordance with the rules and the regulations prescribed under the companies act. Corporate governance offers specific guidelines on the basis of which policymakers and regulators look into that the policies and rules hypothesise are in compliance with legal provisions. Furthermore, it en veritables that companies perform their business operations in an honourable manner (Fernando, 2009). Corporate governance ensures that a company is guiding its business activities in the right direction. In this regard, the figure of speech of companies are determined to be accountable for formulating appropriate strategies and policies in order to make sure that the company is operating ethically. It also seeks that the structure of the board is appropriate, executives are properly compensated and shareholders are report correctly. The principles as well as codes which are undertaken in the policy of corporate governance of companies accumulatively signify that companies are responsible for satisfying the requirements of its shareholders and stakeholders by a large extent (Tricker, 2012). Emphasising on these aspects, the study will opine to critically discuss about the importance of corporate governance in companies. The functions or operations of BOD of companies will also be discussed in order to ascertain that companies are conducting its business operations in an ethical manner. The important policies as well as codes will be further emphasized in this paper, which is the most significant aspect for corporate governance of companies. Due sign ificance will also be rendered towards diversity as a crucial facet in the contemporary corporate governance frameworks. entailment of Corporate Board towards Corporate Governance Corporate governance of companies can be identified as largely dependent on the norms and functions of the BOD. The BOD of companies is recognised to be an important element as the participants or rather the board members are responsible for the formulation of policies as well as strategies for improved performance of companies and are also entitled develop or restructure the Articles Of Association (AOA) and Memorandum Of Association (MOA) for the company. These strategies, norms and policies are implemented with the intention of ascertaining that companies perform their business operations in adherence with legal policies, companies act and rules as well as regulations of the government. Business organisations are thus required to conduct its activities in accordance with the policies formulated by the BOD in order to ascertain that the planned business activities are performed ethically (Copnell, 2010 Ayuso & Argandona, 2007). matter to of Shareholders The key role of BOD is to act as a representative of the shareholders.