The enigma of corporate governance

Abstract

The issue of corporate governance has in recent years received more attention than it would ordinarily have in the light of series of corporate failure that gave rise to implications the affect not only those directly connected with the corporations concerned, but also those affected by its existence such as employees, customers, suppliers and the environment. This interest is further aggravated by occurrences of major corporate failures such as the collapse of the BCCI Bank, collapse of the Barings Empire, the Daiwa Bank debacle and the Maxwell affair which all have pointed to the lack of a proper corporate governance system as a major course. Studies have shown that a majority of corporate failures were predominantly dominated by one individual, occupying a position of trust, who apart from losing large amounts of money also committed illegal acts.