Corporate Governance Case Study

Background
Development of Good Corporate Governance (GCG) is taking central stage in (economy of a country). Thus, governments everywhere are very keen to revamp their corporate governance laws and regulations to address the shortcomings that may surface. Corporate governance may be seen as a web of relationships, not only between a company and its owners (shareholders) but also between a company and a broad range of other ‘stakeholders’: employees, customers, suppliers, bondholders, to name but a few. The subject of corporate governance gradually attracts greater attention and brought to the forefront of policy and practice in the United Kingdom and elsewhere.

A good governance is an essential element for any organization that wishes

Indeed, the key explanation for poor performance is often poor governance. This observation is not limited geographically for we can see many examples around the world, whether in developed or developing economies.”

For example, in a developed country such as Britain, back then in the year 1900 and 2000, Britain’s share of world GDP has declined from 25% to 5.6% which cause British companies to be driven out of major markets such as shipbuilding, vehicle manufacture, computers, investment banking, and so on because of poor corporate governance. Additionally, some scholars advocate that the lack of corporate governance in South East Asia especially after the 1997 financial crisis happens because of the poor investment structure, weak legal and accounting systems, faulty financial practices, questionable political interventions in Indonesia, Malaysia, the Philippines, Thailand and Korea, resulted in a sharp economic decline during that particular period of

The “comply or explain” approach is the trademark of corporate governance in the United Kingdom. (please very briefly explain about the comply or explain approach??)Moreover, this approach has become a powerful trigger for the improvement of corporate governance implementation in a flexible manner and in developing self-discipline voluntarily. The application of corporate governance code for both Issuers and Public Companies is an effective way to encourage companies to implement good corporate governance in their business