The Benefits of Good Corporate Governance

KUWAIT CITY - Jan. 13, 2014 - PRLog -- Introduction:
The relevance of corporate governance has increased several times since the concept was introduced. The current economic crisis is often blamed at poor regulatory and check mechanisms for the business, which has led to ramifications which are far reaching both geographically and socially.

Corporate Governance:
Corporate Governance is the system by which business corporations are directed and controlled. Corporate Governance can be defined as “the whole system of rights, processes and controls established internally and externally over the management of the business entity with the objective of protecting the interests of the stakeholders”.Corporations are also defined as a device for obtaining individual profit without individual responsibility.A corporation is a structure established wherein different parties come together and each provides capital, labor or expertise to maximize profits for all of them.

Corporate Governance- In Kuwait:
New companies Law for Kuwait (Decree Law No 25 for 2012), published on 29 November 2012 introduces a raft of new concepts and principals set to shape the way commercial entities operate in Kuwait. This is a significant step forward for businesses in Kuwait as the new law is set to dramatically improve the way companies are structured and how they operate. New Companies Law will require Kuwaiti companies to adopt more stringent adherence to best practice with regards to “Corporate Governance.” Here, where Performance Inc Kuwait Consultingcan offer its services in building a best governance system.

PIK Deliverables:
PerformanceIncKuwait Consultingprovides the best guidance to implement a governance system that is concerned with holding the balance between economic and social goals and between individual and communal goals. PIK will employ a tried and tested approach for ensuring compliance with regulatory requirements is being met, which we have already successfully implemented with a number of leading organizations.

We deliver:

1)      Governance Implementation Report: Including the steps required to meet the compliance with list of action by PIK and recommendations of steps required by the client company, along with an internal road map that can be used for monitoring process.
2)      Recommendation Report: On the committee structure that must be adopted by the company’s board in order to implement the CMA requirements, given the size of board and avoid conflict in their tasks.
3)      Corporate Governance Documentation: To meet the requirements and achieve full compliance.

Benefits of corporate governance: Implementing the Governance system in many organizations,Performance Inc Kuwait Consultingcould ensure our clientele with its benefits in –

·         Accessing capital or reducing the cost of capital;

·         Facing and responding to external market pressures;

·         Balancing (sometimes) diverging shareholder interests;

·         Resolving governance issues in family-owned businesses;

·         Ensuring company sustainability;

·         And in achieving better operational results.

The benefits are real and measurable. For better corporate governance also decreases the cost of capital and helps to attract and retain shareholders. And the other benefits of corporate governance are its own features like discipline, transparency, Independence, accountability, fairness and social responsibility. In this way corporate governance provides a vital and integral management system which will lead to an integral growth and speedy success of the organization

Benefits to Shareholders: Good corporate governance initiatives can assist the board of control and the management to act on objectives that are in the best interest of both the company and the shareholders. The shareholders also have greater security on the investments they have made because of the transparency and access to investment details. The shareholders are better informed on all important decisions of management, such as the sale of assets and amendments to articles.

Benefits to the National Economy: If a country has a reputation for its strong governance practices, this leads to greater confidence in the investors, which in turn leads to a good flow in capital. The reporting and accounting standards adopted by the country are also an important factor to bring in investments. Thus, good corporate governance practices can be beneficial for any country's national economy.

Conclusion:
Good corporate governance is that the processes of disclosure and transparency are followed so as to provide regulators and shareholders as well as the general public with precise and accurate information about the financial, operational and other aspects of the company. As has been mentioned, corporate governance is a term that means many things and the bottom line for good corporate governance is the dual aim of pursuing profits and doing so in a transparent and accountable manner.

About PerformanceIncKuwait Consulting W.L.L:
Performance Inc. Kuwait caters to our clientele in finding innovative and creative ways to operate and achieve strategic solutions. This enables organizations to execute their business strategy flawlessly, enabling our clients to achieve significant breakthroughs in professional and personal performance. We are distinguished from others by our capabilities in solving our clients' most complex business issues, delivering sustainable solutions to ensure business success for our clients, turning Potential into Performance.

For more information visit our website: www.performanceinckw.com