Why Governance is important also for small companies?

Governance is important. Why?

The CEO and the top management executes the strategy of the company. But the strategy is set by the Board of Directors (BOD). The BOD is the group that controls the CEO and the top management. They also act as intermediary between the management and the shareholders. But not only that, they also manage the relationship with other stake holders in the society.

With regards to the control function, a well organised BOD has an audit committee, a remuneration committee and a nomination committee. The first is auditing the accounts of the company independently, the second sets the remuneration of the CEO and the top management independently and the third is nominating members to the BOD. With independently it is here meant that the members of the committees are independent of the company and the main share holder. For small companies this is a challenge.

How does it look in your company? Would you like a review of your current organisation of Governance? And advice on how to organise it to please investors and banks for instance?

We can help you with this.