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Corporate Governance Issues - Essay Example

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The topic of governance is complicated because of different factors that exist amongst nations and states in different ways and which affect how companies are directed and controlled. For example, just within Europe alone, governance practices in the U.K. differ from those in Germany, Spain, or Italy. …
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Corporate Governance Issues
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Download file to see previous pages Part 1: Governance and Family-owned Firms
This first part is a critical discussion of the following statement: “Corporate governance is not applicable to family owned firms, only to widely held large corporations”.
The discussion begins with a definition of the key terms Corporate Governance and Family-Owned firms and proceeds with a determination of the connection, if any, between these two terms.
Looking at the available literature on the topic of Corporate Governance would give a multitude of definitions that not all the dissertations in the world would be able to contain. It is standard practice, however, to accept the definition of the term provided by the Cadbury Report (1995, §2.5): “Corporate governance is the system by which businesses are directed and controlled.”
And although the term is related to business management and corporate responsibility, it is distinct and different and encompasses these two, which form but two parts of the more comprehensive nature of governance.
According to the Corporate Governance Codes extant in the European Union, there are three broad themes that if taken together provide a clearer idea of what the term really signifies: control of the company, corporate management, or of company and managerial conduct; ...Download file to see next pagesRead More
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