Question

Air voice Oman is a recently established telecommunication company which was founded by Ms. Aadila. The company is managed by the board of directors elected by the shareholders. Corporate   Governance is essential to mitigate the conflicting interests amongst stakeholders of the company.
Corporate governance includes the processes through which corporations' objectives are set and pursued in the context of the social, regulatory and market environment. These include monitoring the actions, policies, practices, and decisions of corporations, their agents, and affected stakeholders. It relates to the internal means by which corporations are operated and controlled. All the companies are required to adhere to the principles of corporate governance codes.
Suggest and explain the principles of corporate governance issued by OECD that should be followed by Air voice Oman with appropriate examples.

Answer 1

Principal of Corporate Governance issued by OECD is devided in six part :
1) Ensuring the basis for an effective corporate Governance
The Corporate governance framework should promote transperancy and fair market
and efficient allocation of resources. It should be consistent with the rule of law and
support effective supervision and enforcement. The same shall be developed with a
view to impact on overall economic performance, market integrity and incentive
it creates for market incentive. Devision of responsibility in defferent authority
shoule be defined and identical to safeguard interest of public interest.
Stock market regulation should support effective coporate governance. Cross
border co-operation should be enhanced including exchange of information.
2) Right and Equitable treatment of shareholders and key ownership function
There should be equitable right in the form of their protection, right including minority
and foreign shareholders. All the shareholders should should have the opportunity of
effective redressal of violation of their right.
3) Institutional Investor, stock markets, and other intermediateries
The corporate governance framework should provide sound incentives throughout the
investment chain and provide for stock market to function in a way that contributes to
good corporate governance. Insider trade and market manipulation should be prohibited.
4) The Role of stakeholders in corporate governance
Recognising the right of stakeholdders establish by law or through the manual agreements
and encourage active co-operation between co-operation and stakeholders in creating wealth, jobs,
and the sustainability of financially sound enterprises.
5) Disclosure & Transparency
The Corporate givernance framework should ensure that tiomely and accurate disclosure is made
in all material matter regarding the corporation including the financial situation, performance,
ownership and governance of company.
6) The Responsibility of the Board
The strategic guidance of the company, the effective monitoring of management by the board and
the board's accountability to the company and the shareholders. The board should make effective changes
in practice as needed to maintain high standard. Selecting, compensating, monitoring and when necessary,
replacing key executives and overseeing succession planning. Ensuring a formal and transparant board nomination
and election process.
So, Air Voice Oman should adopt and follow the corporate governance as stated above.
One of the example is that company should be effectively established stakeholder's Grievances resolution facility.
This facility will get all issue face by stakeholders and resolve the issue as soon as possible. This facility should follow
equiality concept for each categories of stakeholders including foreign stakeholder.