Corporate Governance Assignment Essays

Corporate Governance Assignment Essays Corporate Governance Assignment Essay Corporate Governance Assignment Essay The company host an annual general meeting to which all stakeholders are given due notice Of. Also, in accordance with the banks by-laws, three directors retire from the board annually and may offer themselves for re- election at the banks annual general meeting. The company also issues an annual report and quarterly financial statements to stakeholders and the general public. Pursuant to the mandate to ensure that the interests of the various stakeholders are considered the board of directors meets, at a minimum, on a quarterly basis while the Executive Sub-committee of the Board, comprising seven Board members, meets monthly for the remaining months. (Republic Bank (Guyana) Limited 2014) 3. 4. Responsibility 3: To ensure compliance with the law The board of directors of Republic Bank (Guyana) Limited is committed to proper standards of corporate governance and maintaining these standards at the highest level. Continuous monitoring of the banks systems and procedures is done to ensure that standards are in keeping with the best practice as determined by the principles of corporate governance. The bank is also guided by the Recommendations for a Code of Corporate Governance issued by the Guyana Securities Council, and Supervision Guideline No. 8 on Corporate Governance issued by the Bank of Guyana under the authority of the Financial Institutions Act 1995. In addition the Bank is compliant with Supervision Guideline 10 on the public Disclosure of Information. (Republic Bank (Guyana) Limited 2014) 3. 5. Responsibility 4: To review and guide corporate strategy As stated in the banks Annual report of 2014 Of critical importance to the board of directors is the responsibility to approve and view the banks strategic plan and within this context, to approve annual budgets, including capital expenditure. The board retains the responsibility for reviewing and approving credit applications above a specified limit. In keeping with the expectation of the board of directors the performance of each Management Officer is also assessed against all key performance areas which among other things may include financial targets. The performance of all management officers is reviewed by the Board of Directors on an annual basis. Additionally, taking into account the increasing need for risk assessment, the board of directors has established a risk management committee, known as the other risks committee. 3. 6. Responsibility 5: To select, compensate, and monitor key executives As stated in the annual report of 2014, the managing director and management team are appointed by the board of directors. Each management officer has a written mandate and is required to execute the stated functions as outlined therein. The managing directors responsibilities and authorities are documented and approved by the board of directors. 3. 7. Responsibility 6: To monitor governance practices Monitoring of governance practice involves continuous review of the internal structure of the company, monitoring and disclosure of corporate governance practices on a regular basis, self-assessment by boards oftener performance as well as performance reviews of individual board members and the CEO/ Chairman. COED 2004) At Republic Bank (Guyana) Limited, the board of directors approves the organizational structure for the Bank which ensures a reporting structure with prudent and effective controls. The board of director s comprises nine directors including one executive director. Of the eight non-executive directors, five are independent. Republic Bank (Guyana) Limited adheres to the recommendations of the Supervision Guideline No. 8 on Corporate Governance issued by the Bank of Guyana under the authority of the Financial Institutions Act 1995 regarding its board structure. The board is comprised of an executive director and a majority of independent directors. Republic Bank (Guyana) Limited 2014) Further, as suggested in the COED principles of Corporate Governance 2004, with single tier board systems, the objectivity of the board and its independence from management may be strengthened by the separation of the role of chief executive and chairman, Republic Bank (Guyana) Limited chairman is a non-executive director. The managing director of Bank (Guyana) Limited is the only executive director on the board. Additionally, in the annual report of the bank a statement of the banks corporate governance practice is made public. 3. 8. Responsibility 7: To ensure integrity of accounting and financial systems Several committees have been set up by Republic Bank (Guyana) Limited to ensure integrity of accounting and financial systems. These committees are: 3. 8. 1. The audit committee The audit committee of the board meets at least quarterly to review the ann.s system of internal control, financial reporting process, audit and examination process, and compliance with Statutory and regulatory laws. When necessary, the Audit Committee is responsible for reviewing the independence, competence and qualifications of the External Auditors. 3. 8. 2. The compensation committee The compensation, which meets at minimum once per year, is responsible for formalizing the banks remuneration policy for staff. 38. 3. The other risks The other risks committee, which meets quarterly, is responsible for reviewing policies and procedures and ensuring that the Bank is not exposed o unnecessary risks with respect to its operations. 3. 9. Responsibility 8: Corporate Social Responsibility Every board has a duty to formulate the companys strategy, recognizing the risks involved, and part of that process involves determining how the company will behave, in other words, establishing how social responsibility will be exercised throughout the organization. (Trickier 2012, p. 235) At Republic Bank (Guyana) Limited the need to be a good corporate citizen and perform its corporate social responsibility is understood and mirrored in the companys vision which establishes the bank wishes to set a standard of excellence for social responsibility. Corporate social responsibility activities of Republic Bank (Guyana) Limited are conducted under its power to make a difference program. The Power to Make a Difference programmer aims to enhance the quality of life of disadvantaged persons; support healthcare programmed and disability awareness initiatives; provide opportunities for young people to realize their truest potential through sport, education and the arts; build community spirit and, in essence, help to correct some of society ills. (Republic Bank (Guyana) Limited 2014) 4. Recommendations It was found that Republic Bank (Guyana) Limited in its governance aims to be a good corporate citizen by complying with rules and regulation stipulated at a national level and also meeting international standards of corporate governance. However, there are areas that could stand improvement and as such the following recommendations are made: 1 ) The chairman of the board of directors should be an independent non-executive director.