Ten Commandments Establishing a Corporate Governance System

Ten Commandments Establishing a Corporate Governance System

Monday، 20 September 2021 | Article Rating

According to the public relations of the Industrial Management Organization, the first international corporate governance conference was held in line with emerging management and governance trends in the world.

According to the report, the conference will address new topics, including the impact of the Fourth Industrial Revolution and corporate governance, platform governance, and many emerging management issues.

 In this conference, Ebrahim Sheikh, a member of the faculty of the Industrial Management Organization and the scientific secretary of the conference, spoke on the ten decrees of establishing a corporate governance system in Iranian companies.

Regarding corporate governance, he said: Corporate governance begins at the request of the company's shareholders' assembly. Measures such as separation of ownership from management and the establishment of professional managers and management systems are among them. The election of the board of directors and delegating authority to them and not distorting the position of the assembly with the board of directors and the managing director, determining the challenging and at the same time realistic expectations are other cases. Holding annual meetings, plans and budgets and quarterly or six-month performance with the necessary accuracy and quality has a significant effect on the establishment of corporate governance.

The scientific secretary of the conference added: the board of directors by exercising the roles, responsibilities and duties of the board of directors and setting the calendar of board meetings and holding it effectively and exercising leadership, influence and timely control, forming board committees and following the tasks of assemblies and setting strategic plans. Updating it can have a huge impact on corporate governance.

In another part of his speech, the faculty member of the Industrial Management Organization emphasized: Awareness, commitment and balanced and appropriate behavior of the company's management, especially the company's senior executives in accepting the company's governing elements and optimal implementation of upstream policies may be the most important challenge for Iranian organizations. . In many studies and observations, CEOs consider the board of directors as a nuisance and their existence disrupts the management of the company, while the establishment of the management system is not possible without placing the board in its true position.

 He added: "Effective external controls such as upstream laws, the existence of the media and empowerment of civil society organizations and trade unions, strengthening the capital market and creating strong requirements for companies is a very important factor in strengthening corporate governance."

  Ebrahim Sheikh said: the government and public institutions, especially the Ministries of Economy, Silence and Labor, which have large and large state-owned companies under their management or subordinate organizations, can prepare, communicate and establish a corporate governance system to take an effective step in developing this approach. Take.

 In the end, he said: Banks and financial institutions should be diligent in establishing corporate governance as a basic corporate approach in establishing corporate governance as a basic approach when providing facilities and measuring risk and credit. As many of these institutions are shareholders in many companies and from their collective position can develop corporate governance.

  • Ten Commandments Establishing a Corporate Governance System
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