Business

Organisations asked to adopt best corporate governance systems

The Institute of Directors has underscored the need for corporate organisations to adopt best corporate governance systems to ensure effective performance.

President of the Institute, Frederick Ofosu Darko, observed the recent insolvency of UT and Capital banks could have been avoided if the entities adopted good corporate governance

Corporate governance is the system of rules, practices and processes by which a company is directed and controlled.

It essentially involves balancing the interests of a company’s many stakeholders, such as shareholders, management, customers, suppliers, financiers, government and the community.

“Currently, the level of corporate governance in the country is not the best. This is the reason why some of the organizations are failing. As a corporate body, we need to make sure that we adopt the best practices” he advised.

Speaking at the maiden edition of the Institute’s bi-monthly business meeting in Accra, Mr Ofosu Darko said companies do not have to wait for crisis before instituting measures to resolve them but rather, should be proactive.

The meeting was themed: Stimulating Public-Private Sector Dialogue: The Place of Key Stakeholders in Leadership and Corporate Governance in the Accelerated Socio Economic Development of Ghana”.

Meanwhile, the institute has launched three initiatives to propel competitiveness among directors in the country.

Also, new members who have passed their entry requirements were inaugurated into the Institute while others were presented with certificates to become fellows and honorary members of the Institute.

By Grave Asare|3FM|3news.com|Ghana

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