Corporate governance

What is meant by corporate governance?

Corporate governance is one of the important topics for all local and international companies in our present era, as the financial crises that caused the global economy have made the concept of corporate governance a priority. Governance systems and laws in the world focus on limiting the use of administrative authority in matters other than the interests of shareholders, and work to activate the performance of boards of directors in these companies, as well as strengthen internal control, follow up on the implementation of strategies, and define the roles and powers of each of the shareholders, the board of directors, executive management, and stakeholders. In addition to emphasizing the importance of transparency and disclosure. The concept of corporate governance is a reform approach and a new working mechanism that will consolidate the integrity of financial transactions by setting parameters that serve the public interests and the private rights of shareholders.

The importance of corporate governance

1- Economy

Corporate governance contributes to raising the level of economic efficiency because of its importance in helping to stabilize financial markets, raise the level of transparency, and attract investments from both outside and inside, in addition to reducing the amount of risks facing the economic system.

2- Companies

Applying the principles of governance helps companies create a sound work environment that helps the company achieve better performance with the availability of good management, so the economic value of the company is greater, in addition to helping companies access financial markets and obtain the necessary financing at a lower cost, which helps them expand their activity. Reducing risks and building trust with stakeholders.

3- Investors and shareholders

Corporate governance aims to protect investments from exposure to loss due to misuse of power that is not in the interests of investors. It also aims to maximize investment returns, shareholders’ rights, and investment value, in addition to reducing cases of conflict of interest. The company’s commitment to applying governance standards activates the role of shareholders in participating in making major decisions related to the company’s management and knowing everything related to their investments.

4- Other stakeholders

Governance seeks to build a close and strong relationship between the company’s management, its employees, its suppliers, its creditors and others. Good governance enhances the level of confidence of all customers to contribute to raising the level of the company’s performance and achieving its strategic objectives.

Why corporate governance?

Applying governance principles within companies helps:

Defining relationships between shareholders, management, the board of directors and other stakeholders.
Providing shareholders with confidence regarding their investments in companies.
Determine management’s obligations with business rules towards shareholders and the Board of Directors.
Attracting investors and gaining their trust through effective practice of governance within the company.
Achieving justice and transparency, and strengthening the relationship between the company’s management, owners, and all stakeholders.
Monitoring and achieving the company’s goals and maximizing shareholders’ wealth.

Contact us for the best corporate governance services

Our company has an expert team specialized in the field of corporate governance and qualified to implement the best services provided in this field as follows:

Building the company’s organizational structure.
Drafting company contracts, and focusing on clauses that legally preserve their rights.
Evaluating the governance system in Egyptian companies of all types and sizes.
Review annual reports and disclosures.
Assisting in making decisions that contribute to reducing the risks to which the company may be exposed.
Collaborate with financial officers in resolving current and potential financial problems of the company.
Representing the company in various cases that may be filed against it by internal or external parties.
Developing corporate governance regulations in Egypt to suit their activities.