Corporate Governance Final Exam
Describe basicly of corporate governance is the a system that aims to
carry out the management and control of companies within the framework of
accountability, transparency, responsibility, and fairness principles and create
tools related to this. And corporate governance aims to the continuity of the
assets of companies, institutions and, organizations.
Corporate governance is a system of procedures for dealing with corporate
issues, as well as rules and responsibilities that are delegated to various groups
within a company. Shareholders, one of the groups, are given certain rights as
company owners. These rights are protected by law, and respecting them is one
of the goals of corporate governance.
In the film, I have watched that there are meetings with the shareholders and the
main shareholders. In the decision channel, minor shareholders may affect the
decision of the main shareholders. They can vote on a variety of corporate
matters, including voting, company acquisitions, and the merger or liquidation
of company assets. Voting on these issues is usually held when companies hold
their annual meetings. If shareholders are unable to attend the meetings, they
have the right to vote in person or by proxy. If companies have taken these
measures, they can also vote by post, telephone and / or mail. We can give an
example of the main female character we watched in the film reaching small
shareholders by letter and causing the big shareholders to change their decision
in the decision process.
Also, as we saw in the movie, the main male character (company owner Edward
L. McKeever) is suing his company for years. Yes, shareholders who have been
wronged by their Company also have the right to sue. If they have been denied
access to their financial information, they can take legal action against their
company. Shareholders wishing to sue their companies should first consult with
local authorities on how to proceed.
The main partners work for their own interests, and these interests may not
always be the same as those of the other partners. In this case, it will use its
control rights to maximize its own assets. As we can see in the movie, except for
the owners of 5 joint companies, their salaries are higher than other employees
and they arrange it themselves. In case the main shareholders in the company are
in control of the cash flows of the company, they will see themselves as a
priority in expenditures. This situation arises especially if their own shares have
voting privileges or if they manage the company in a hierarchical structure.
Institution management and institution stabilize, increase the competitiveness of
the institution, increase the defense power against economic crises, increase the
application of modern management techniques, increase the profitability of the
institution, increase the quality and transparency of the institution management,
increase the trust and trust in the institution, decrease the capital costs, decrease
the loan interest , loan costs are reduced.
For 4 features that corporate management should have; The principle of fairness
is an expression of the company's management treating all right holders equally.
This principle refers to the protection of shareholder rights, including minority
shareholders and foreign partners, and the enforcement of contracts concluded.
The principle of transparency requires the company to share accurate, clear and
comparable information with the public.
The principle of accountability requires the board of directors to monitor the
performance of the top management independently and to ensure the
accountability of the top managers to the shareholders.
The principle of responsibility implies that companies operate in compliance
with laws and regulations that reflect social values while creating value for their
shareholders.
These were the four things that should have been for the movie I watched.
Corporate governance has been established to ensure that organizations use their
resources effectively and ensure their sustainability by reflecting different
interests in company strategies in parallel with the capital markets reaching a
global position. Corporate governance aims to expand the concept of unity of
purpose among employees to include other stakeholders, to create systems
where management performance is objectively monitored and to enable
performance increase.
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