n Malawi Law Journal - Towards good corporate governance in state-owned industries : the accountability of directors
|Article Title||Towards good corporate governance in state-owned industries : the accountability of directors|
|© Publisher:||University of Cape Town|
|Journal||Malawi Law Journal|
|Publication Date||Jan 2009|
|Pages||55 - 69|
This article examines the importance of corporate governance for state-owned industries. It argues that directors' accountability is the basis for ensuring the success of any corporation. It singles out state-owned industries because of the challenges faced by these industries in separating ownership and control and in defining their objectives, the economic significance of state-owned industries in developing economies and the far-reaching effects of any failures of such industries on the general public. As a template for analysis, the article adopts the governance principles outlined in the Commonwealth Association for Corporate Governance (CACG) Guidelines. Of all principles of good corporate governance, this article employs the principle of accountability as its main analytical tool because it supports the very basis for which legal personalities in the form of companies or corporations were created. It is recommended that measures should be put in place to ensure the accountability of those entrusted with the control and management of state-owned enterprises. Such measures should include legislation and the reduction of shareholder involvement in the day-to-day functions of these enterprises.
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