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Code: 44648 Visited: 322 Publish Date: Nov 11 2017 - 10:48
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Capital Market
High Corporate Governance Standards Build Trust, Expert Says
Tehran, Nov. 11 (SENA) - The development and deployment of corporate governance policies can build trust among stakeholders, attract new resources, and more importantly help allocate the resources optimally, said a financial expert.

Tehran, Nov. 11 (SENA) - The development and deployment of corporate governance policies can build trust among stakeholders, attract new resources, and more importantly help allocate the resources optimally, said a financial expert.

Corporate governance is the system of rules, practices and processes by which a company is directed and controlled. Corporate governance essentially involves balancing the interests of a company's many stakeholders, such as shareholders, management, customers, suppliers, financiers, government and the community.

“High corporate governance standards increase operational efficiency, protect stakeholders’ rights and increase sustainable investment by attracting investors' confidence,” Sajjad Syyah told SENA.

He added that transparency in performance, stable rules and regulations, and regulatory authority are three basic components for the establishment of corporate governance.

Corporate government policies can reduce threads and help manage business risk through improving transparency, the expert said.

He urged companies to form a board consisting of directors with a specialty in technical, financial, legal, and marketing affairs, stressing that the number of board members should not be too many.

Yet he admitted that some structural and institutional barriers exist that need to be addressed by government authorities. For instance, officials may interfere in big companies’ affairs by imposing certain board members to them, he noted.

He said he believes that majority of board members must be independent, especially the chairman. He added that it is a wrong policy that some companies select one person as the chairman and CEO.

 
By: Security and Exchange News Agency (SENA)
 
 
 
 
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