The essence of Corporate Governance and it's importance. 1

The essence of Corporate Governance and it’s importance.

Good Governance, Greater Culture!

Corporate governance is defined by the Eastern Caribbean Central Bank as “the Legal system or other mechanisms which ensure that the interests of the manager of the company are aligned with those of the shareholders.”  When this definition is applied in the context of C.I.P business, it can be seen as the system of rules, practices and processes by which an approved company is directed and controlled under the individual member state.  The purpose of corporate governance is to facilitate effective, entrepreneurial and prudent management that can deliver the long term success of the (c.i.p approved) company.

Here, some focus should be placed on publicly held companies, they are intended to serve as guiding principles to improve corporate governance in privately held, family owned and state owned enterprises as well as overall public sector governance. They also articulate the role of all stakeholders including customers, employees, pensioners and the public in the governance process. Maintaining an excellent corporate governance code is essential for the success of these programmes as this will inadvertently limit programme risks.

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