Much obliged, my lord: legal practice demystified : corporate governance

Abstract

Worldwide there are on-going debates engaging professionals and academics in understanding the ‘large-scale corporate failures’ (Wanyama et al., 2014). However, studies show that some companies have been successful as a result of good corporate governance in Uganda (Mugisha and Berg, 2015). The variations could be explained by the various efforts, which have been made ‘by government and private organizations to promote good governance in both the private and public sector’ (Wanyama et al., 2014).1 Corporate governance means the process and structure used to direct and manage the business and affairs of a financial institution with the objective of ensuring its safety and soundness and enhancing shareholder value and shall cover the overall environment in which the financial institution operates comprising a system of checks and balances which promotes a healthy balancing of risk and return2 . Corporate governance is the structure which directs and regulates business corporations. The structure of corporate governance specifies the distribution of rights and responsibilities among corporate participants e.g. the board, managers, shareholders and other stakeholders. According to Cadbury Report, Corporate Governance is the system by which Companies are directed and controlled (Keasey, et al, 2005). Furthermore, Cadbury recognized that a system of good corporate governance allows boards of directors to be free to drive their companies forward”, but exercise that freedom within a framework of effective accountability. Corporate governance outlines the rules and procedures for making decisions on corporate matters3 . Corporate governance deals with how to make those in corporate management more accountable, more responsible and more sensitive to the interest of shareholders, creditors, members of the public and social interests respectively. Corporate governance refers to the way in which business vehicles` are governed and to what purpose. A system by which companies are directed and controlled in order to align economic and social goals with those of the individuals and the community.