Corporate governenance Essay Example | Topics and Well Written Essays - 1500 words

Corporate governenance - Essay recitationlowed by series of consequences in the capital markets including managerial, and accounting corruption or weakness of the internal inhibit systems panel on activities of the financial institutions.Based on the above the global economy has witnessed the introduction of wise terminology namely Corporate brass section to detect the weakness in the companies keep. The concept of the Corporate Governance has been developed to direct the management and business inside and outside the confederacy. The Corporate Governance function enables the company to ensure the existence of efficient systems, sets out responsibilities and duties of the board of directors members and the executive management of the company, considering that interest of the shareholders irrespective of their shareholding and the interests of the unalike stakeholders in the company should be protected (Menon and Joanne1997, p 564).The responsibility of the Corporate Governance is maintaining interest such(prenominal) genuine management of resources and engaging in environmental awareness of the shareholders and achieve fairness among them, strengthening the office of disclosure and transparency, and reiterate role of the management. The laws and regulatory policies of the business in the Kingdom of Saudi Arabia have not given considerable attention to the concept of the Corporate Governance, except after the crisis of the Saudi Stock transpose which took place in the second half of the year 2006 particularly 1/7/2006.In comfortable of the flourished Saudi economy due to oil price soaring and availability of the cash along with the loans espousal from the banks, individuals began to speculate in shares through availing loans from the banks and not from their own savings.Lack of transparencies in the market, misleading rumors, weakness of control from the Capital Market Authority and management of companys speculations on the poor companies in call of t he financial position have increased (Ian and William 2005,