Good Corporate Governance Principles and Recommendations for Good Practices

Abstract

This study conducted in 2009 summarizes overall good corporate governance principles and recommendations for good practices to all organizations (Public, private or non-profit) in Bangladesh. These good practices are divided into two categories (i) structure of the board of directors and (ii) operation of the board of directors. The basic governance principles related to the effectiveness and accountability of board of directors. We argue that good corporate governance principles can make stronger intra-company control and reduce opportunistic behaviors and lower the asymmetry of information, so it will be a positive impact on an organization. Although the study is addressed primarily to Bangladesh based organizations, the general principles are applicable to foreign entities as well, although modifications must be made to description for legal and cultural differences.

Keywords: Corporate governance, Good practices, Public companies, Private companies and Non-profit organization