1Kelly functions and responsibilities that are recognized to

1Kelly and Parkinson (1999) The conceptual Foundations of the Company.
Available at: https://learn.uea.ac.uk/bbcswebdav/pid-2046174-dt-content-rid-3108613_1/courses/LAW-7008A-17-SEM1-A/Kelly%26Parkinson_1998_TheConceptualFoundationsofTheCompany%281%29.pdf

 

2 Andrew Keay (2008) Ascertaining
the corporate objective an entity maximization and sustainability model.
The Modear Law Review. Volume 71. Pp. 665-667

Best services for writing your paper according to Trustpilot

Premium Partner
From $18.00 per page
4,8 / 5
4,80
Writers Experience
4,80
Delivery
4,90
Support
4,70
Price
Recommended Service
From $13.90 per page
4,6 / 5
4,70
Writers Experience
4,70
Delivery
4,60
Support
4,60
Price
From $20.00 per page
4,5 / 5
4,80
Writers Experience
4,50
Delivery
4,40
Support
4,10
Price
* All Partners were chosen among 50+ writing services by our Customer Satisfaction Team

 

3 3
Kelly and Parkinson (1999) The conceptual
Foundations of the Company. Available at: https://learn.uea.ac.uk/bbcswebdav/pid-2046174-dt-content-rid-3108613_1/courses/LAW-7008A-17-SEM1-A/Kelly%26Parkinson_1998_TheConceptualFoundationsofTheCompany%281%29.pdf

The effect that the various participants
generate on a company depends on the specific manner in which they act in
relation to that company. This form of action, in turn, depends on the
functions and responsibilities that are recognized to these participants, as
well as the way in which they interact with each other. While every company has
Corporate Governance, what differentiates one from another is the quality of
it, that is, it’s good or bad Corporate Governance. The good or bad quality
will influence the way the company is treated in the different transactions it
carries out. In addition to this, the usual or typical behavior of companies in
this aspect has an impact on how a country relates to economic agents abroad3.
Let’s see why this is so. When a company denotes a high standard of Corporate
Governance, it is perceived as a more reliable company, and as such, it
accesses better conditions in the markets in which it operates. For example,
their products have more acceptability, they can market better and their sales
grow. On the other hand, one of the most likely benefits in this logic is that
more shareholders are willing to invest in the company, or more banks express
interest in granting loans under more favorable financial conditions, that is,
at a lower interest rate or longer terms. Comfortable. A company in this
condition can be advantageously financed not only to sustain its regular
operations, but also to expand its operations by initiating new projects or
strategic alliances.

However, as well we knows, nowadays the corporations
have to do not only with having very good professional classic management but
also in having a good system of governance by whit both board of directors,
shareholders and the top management teem can interact each other in other to
make the company sustainable in the long tern. So, the biggest problem that it
haves to deal with is the faiths that normally happen between the board of
directors against shareholder and them against the owner. This fights or
arguments usually happen because shareholder what to protect their rights (the
right to sell shares, the right to effectively vote shares, and the right to
hold fiduciaries managing investor money accountable for misconduct, etc. ) and
the directors and owner want to protect their own interest, fact that shows
that difficult is have clear long term directions because the companies don’t
have a good project more than a normal strategic plan, and have a really good
project that all the members of the company most follow is the only way to
orientate all the member to the final purpose that is the success of the
company, and is there when a good corporate governance shows it relevance,
since its creates a transparent set of rules and controls in which
shareholders, directors and officers have aligned incentives. If
the company’s purpose is authentic and stable and this is understood by
stakeholders, they trust the company and could make choices accordingly2.
This creates value for the company which at the end means competitive advantage
in the marketplace.

The term Corporate Governance
has attracted a lot of attention worldwide, especially after the economic
crises of some countries. Situation that exposed the close relationship between
the seriousness of such crises and the internal situation of companies, and
when we witness the messes in more developed markets1.
And falls to the bottom of important companies operating in sectors considered
very competitive. As a reaction to these events, there is a strong current that
seeks to improve the Corporate Governance of companies as a means for such
crises, which inevitably occur, to be the least harmful possible; but above all
so that the companies have better performance, are more solid and stable and
are better prepared to compete. In many occasions, businesspersons complain
about the lack of financing and partners’ resources to advance the expansion
plans of their companies. The truth is that even in situations of high
liquidity in the market and in the presence of apparently very attractive
projects and initiatives; many entrepreneurs do not access fresh resources,
which is due to the way in which their companies are managed.