Tag Archives: Corporate Governance Principles

A Case Study on The Boeing Company Derivative Class Action

In 2006, plaintiffs in a derivative class action against the directors of The Boeing Company (“Boeing”), led by their counsel Labaton Sucharow, achieved a landmark settlement establishing unique and far-reaching corporate governance standards relating to ethics compliance, provisions that will also obligate Boeing to contribute significant funds over and above base compliance spending to implement the various prescribed initiatives.

In particular, Boeing’s Board of Directors will expressly undertake, through amendment of Boeing’s Corporate Governance Principles, reasonable oversight and monitoring responsibility for the implementation of Boeing’s ethics and compliance program and the effectiveness of those processes on an annual basis. The Audit Committee Charter also will be amended, including to provide for the Audit Committee to undertake responsibility for reporting no less than annually to the Board with respect to the implementation and effectiveness of Boeing’s ethics and compliance program. Click here to read more…

Register to mark your Comments

Case Study on Good Corporate Governance

International Finance Corporation (IFC): The International Finance Corporation (IFC) is part of the World Bank Group and was established in 1956 to encourage private sector-led growth in developing coun-tries. It does this by financing private sector projects, helping companies mobilizefinancing in international markets, and providing advisory services and technical assis-tance to companies and governments. IFC’s practical experience with structuringinvestments, appraising potential investees and nominating corporate directors allowsit to put corporate governance principles into action. IFC’s focus on good corporategovernance practices in client companies helps it both to manage risk and to add valueto firms in emerging markets.

Organisation of Economic Co-operation and Development (OECD): The Organisation of Economic Co-operation and Development (OECD) is aunique forum where the governments of 30 democracies work together to address the economic, social and environmental challenges of globalisation, in close co-operation with many other economies. One of these challenges is corporate governance, a topic on which the OECD has developed internationally agreed Principles of Corporate Governance, which have served as a basis for regional policy dialogue programmes throughout the world. Click here to read more…

Case Study on Financial Services Associations

Corporate governance principles have imposed themselves as the basic rules for any well run company to follow. The trend now affects more than just the traditional business companies and is often seen as a tool for standardizing the controlling vision for any major organization in the world (Labie 2000). Corporate governance principles are also an important ingredient in the development of effective, credible, accountable and successful microfinance institutions inthe establishment of appropriate structures and process governance (Fowler and Kinyanjui 2004). Chu (2000) laid emphasis in microfinance institutions in providing clear and solid answers to the critical issue of governance if these institutions aspire to create a true link with the capital market. Click here to read more…

Register to mark your Comments