There are a few key concepts underpinning good corporate governance in an organisation. Here are a few of them you should know for your ACCA P1 studies.
The board of directors should treat all stakeholders fairly and equitably.
Each director should independent. There should be no conflict of interest. For example, it would not be good for a director to get involved in the sale of an asset to another company, if he/she was a director of that other company too.
The directors must protect the shareholders interests in the organisation, and should give confidence to the shareholders that thier interests are being protected.
The directors should disclose material information in a timely and accurate manner.
Those who control the business (i.e. directors) should be accountable to those who own the business (i.e. shareholders)
Moral and ethical issues should be considered when making decisions relevant to the organisation.
The board of directors should ensure the organisation complies with the relevant laws where it operates.