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Chapter 11

4.1 Corporate governance

Corporate governance is defined as ‘the system by which companies
are directed and controlled’ and covers issues such as ethics, risk
management and stakeholder protection.

Corporate governance frameworks contain regulations on:

 separation of the supervisory function and the management
function

 transparency in the recruitment and remuneration of the board

 appointment of non-executive directors (NEDs)

 establishment of an audit committee and a remuneration
committee

 establishment of risk control procedures to monitor strategic,
business and operational activities

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