Primary and Supporting Purposes of Corporate Governance

Primary Purpose:

To monitor those parties within a company who control the resources owned by investors.

Supporting Purposes:

1. Ensure there is a suitable balance of power on the board of directors
2. Ensure executive directors are remunerated fairly
3. Make the board of directors responsible for monitoring and managing risk
4. Ensure the external auditors remain independent and free from the influence of the company.
5. Address other issues, e.g. business ethics, corporate social responsibility (CSR), investors relation and protection of 'whistleblowers"