Corporate Governance is the system of rules, practices and processes by which an organization is directed and controlled.
Corporate Governance essentially involves balancing the interests of the many stakeholders in an organization company –
- its shareholders,
- management,
- customers,
- Funders and donors
- Service providers,
The presentation on “Corporate Governance of not-for-profit organizations” – PDF/PPT – highlights the steps in setting up an effective governance process. These are as follows:
- Legal structure
- Setting up Bye Laws
- Governance structure and responsibilities
- Compliance tracking
- Convening of regular Board meetings
- Setting up control environment and robust internal control processes
- Credibility of financial results of the Foundation
- Independent audit of financial results
- Submission of tax returns to Revenue Authorities
- Prevention of conflict of interest in operations
- Develop and implement policy manual across organization