The five principles set out below were developed by the Organisation for Economic Co-operation and Development (OECD). They are intended to provide a general model of a good corporate governance system to achieve the following objectives.
(1) Protect shareholders’ rights, such as voting rights and the right to transfer ownership in shares.
(2) Ensure the equitable treatment of all shareholders, including minority and foreign shareholders. All shareholders should have the opportunity to obtain effective remedy for any violation of their rights.
(3) Recognize the rights of stakeholders as established by law and encourage active co-operation between corporations and stakeholders in creating assets, jobs, and the sustainability of financially secure enterprises.
(4) Ensure that timely and truthful disclosure is made on all material matters concerning the corporation, including the financial position, performance, ownership, and governance of the company.
(5) Ensure the strategic direction of the company, the effective monitoring of management by the board, and the board’s accountability to the company and the shareholders.
(1) Protect shareholders’ rights, such as voting rights and the right to transfer ownership in shares.
(2) Ensure the equitable treatment of all shareholders, including minority and foreign shareholders. All shareholders should have the opportunity to obtain effective remedy for any violation of their rights.
(3) Recognize the rights of stakeholders as established by law and encourage active co-operation between corporations and stakeholders in creating assets, jobs, and the sustainability of financially secure enterprises.
(4) Ensure that timely and truthful disclosure is made on all material matters concerning the corporation, including the financial position, performance, ownership, and governance of the company.
(5) Ensure the strategic direction of the company, the effective monitoring of management by the board, and the board’s accountability to the company and the shareholders.