Corporate governance is a number of processes, customs, policies, laws, and institutions which have impact on the way a company is controlled. An important theme of corporate governance is the nature and extent of accountability of people in the business, and mechanisms that try to decrease the principal-agent problem
- Monitor performance of parastatals
- Assist Government in reviewing strategic objectives and setting performance targets of parastatals
- Facilitate screening suitable candidates to serve on parastatals Boards and monitor their performance
Benefits of Corporate Governance
- Good corporate governance is an essential tool to ensure that companies are run well and efficiently. It also determines whether a company prospers or fails.
- Good Corporate Governance also ensures that there is transparency as well as ethical conduct and that disclosure requirements are strictly observed, which are at the core of Corporate Governance.
- It compels the Board of Directors and Management to always act in the best interest of the company.
- Good Corporate Governance gives a country global reputation
- It also assists a country to attract FDI because it instills confidence in investors.
- Reporting and accounting standards adopted by parastatals are also important measures of corporate governance.
.The Responsibilities of Performance Monitoring Department are to:-
- Advocate for good corporate governance practices within parastatals
- Review PE strategic objectives and facilitate setting of performance targets at shareholder level
- Entrench adoption of corporate governance instruments within parastatals
- Monitor and evaluate overall performance of parastatals and recommend appropriate interventions
- Advise on the selection of non-executive directors of parastatals and instituting board and director performance appraisal processes
- Advises on appropriate interventions required to influence policy in the area of good Corporate Governance