CORPORATE GOVERNANCE GUIDELINES FOR GOVERNMENT AND PRIVATISED CORPORATIONS IN KENYA
Since the nineties a trend of privatization of state-owned enterprises has taken place throughout the world. However, there are still many companies in government hands. What should the proper corporate governance guidelines for anyone companies be? And for privatized companies currently in personal hands?
The correct cooperate governance guidelines (CGG) for state owned businesses (SOE) plus the privatized businesses should not be different from the additional enterprises. SOE's and the privatized once come with an advantage because of their connection with the us government. These businesses should begin with all the OECD guidelines for work governance (OECD, 2004) and build upon these their specific CGG in order to guard against having dishonest added advantage over the additional enterprises. The principles of governance (OECD, 2004) are versatile in character as they have room to get adaptation for the context. The flexibleness should be considered cautiously so as to not be designed in a way that would infringe the stakeholders' privileges. This conventional paper lists the rules for SOE's and those which has been privatized. In the beginning there should be legal and regulatory framework that ensures a good playing discipline in market segments where point out owned and private sector firms compete to avoid market effects (OECD, 2005). The construction should go with OECD rules of work governance (OECD, 2004). Among the list of aspects recognized by OECD (2005) contain distinguishing among state ownership function and other state function, applying basic laws and regulations SOE's and supplying competitive circumstances regarding budget. The next standard is on ownership. OECD (2005) guides that the point out should act as informed and active owner and establish a clear constant ownership coverage ensuring that the governance of SOE's is usually carried out within a transparent and accountable method, with the important degree...
Referrals: Narveson, T. (2003). Ethics in the Business and Professional Lifestyle. Retrieved by http://swissmc.blackboard.com/webapps/blackboard/content/listContent.jsp?course_id=_307_1&content_id=_17024_1
OECD. (2005). OECD Guidelines in Corporate Governance of State-Owned Enterprises. Paris, France: OECD Publication Services.