Corporate Governance Essay Example | Topics and Well Written Essays - 500 words - 2

Corporate Governance - Essay Example Representative government was an essential aspect of the corporation more than partnerships. Since the corporate government’s inception, the responsibility and functions of the board and organization around corporate elections have been the core theme. There is always a problem of how to control limits on executive will and small stakeholder protection. The corporate suffrage gave every member a vote (Becht, Bolton & Roell 2005, p. 2). This was to remove privileges enjoyed by other members over others. The debate on management’s power to solely run a corporation is extremely old. Corporate governance has become a largely outstanding issue in the last two decades. This is because of several issues. First, there has been growth in the global privatization wave for the last two decades. Second, there have been reforms in pension fund and a growth in private savings. Third, it was influenced by the 1980s takeover wave. Fourth, there has been an integration and deregulation of capital markets. Fifth, there has been a concentration on corporate governance due to the East Asia crisis of 1998. Sixth, it has been influenced by a sequence of USA corporate breakdowns and scandals that have grown (Becht, Bolton & Roell 2005, p. 7). The pragmatic information on corporate governance is extremely large. Conversely, there are several techniques that can be employed to resolve issues within conflicting shareholders. They include: shareholders suits and fiduciary roles; hostile takeovers; incentive schemes; large investors; and board of directors. In addition, corporate boards have three core duties: strategic oversight, corporate accountability, and senior level staffing and evaluation. Corporate boards have a duty to assess and endorse core capital investments, strategic plans, and risk management practices and policies. They also supervise implementations that may comprise effectiveness,