OREANDA-NEWS. September 16, 2010. Letter I. Corporate Governance, or there is no limit for perfection [part I].

We decided to start a series of letters to discuss the issue of corporate governance as the most controversial and challenging one in today's situation. This term is so widely used in the international business community that hardly anyone gives enough thought to what it really means. Meanwhile, what is corporate governance? In the original and more narrow meaning it stands for a system of relationships between the company and its shareholders. In a broader sense it is a whole range of issues concerning both relations with  shareholders and investors, and the work of management bodies (the Board of Directors and the Management Board), organizational structure, management processes and their efficiency. Therefore, corporate governance encompasses practically all issues related to coordination of the company's work and managerial decisions. In fact, these are daily processes to ensure the work of an organization as one whole well-coordinated mechanism and regulate its interaction with various interested groups, mainly, with shareholders. But the most important thing is that behind these processes there are certain people and the efficiency of any company depends on the professionalism of such people.

Full text see here: http://www.nornik.ru/_upload/editor_files/file1460.pdf