Question

Develop corporate governance policies for blue buddies (a game console company）that protect the interests of the shareholders and help to attract foreign investments in the future. Justify your response.

Answer 1

Below are the corporate governance policies for blue buddies:

1. Disclosure of information: The company must disclose all the internal information which would impact the share price to its shareholders. This would ensure that there is transparency in the information disclosure process and no information is hidden from anyone.

2. Legal implication provision: If any employee in the company is involved in insider trading or any such wrongful event, then there must be a provision for legal implication so that it discourages other employees and protects shareholders interest.

3. Ease of regulatory framework for investment: In order to attract foreign investment, there must be simplified internal regulatory framework and policies that would encourage foreign investments in the organisation.

4. Audit committee: There would be a provision of audit committee that would be appointed by the board of directors to monitor the financials and operations of the organisation in order to safeguard shareholders interest.

5. Corporate social responsibility policy: The organisation must also have CSR policy in place and must invest in social causes in order to give back something to the society and create a positive image in the minds of general public, thereby preventing shareholders interest and attracting foreign capital.