Corporate Governance Advisory
Corporate Governance Advisory
Globally, the recent economic crisis with its high-profile corporate failures has turned the spotlight on corporate governance. While on one hand, regulators are strengthening regulations and making it more prescriptive, companies are revisiting their governance structures, disclosure practices, risk management practices, etc. in an effort to regain investor confidence and counter increasing shareholder activism.
In Nigeria, while the effects of economic crisis have been minimal, corporate governance has been brought to the fore by businesses seeking to establish a global footprint and build their reputation at a global level. These companies are therefore looking at improving their corporate governance practices not just to achieve compliance but to help them improve their businesses and position them for competitive advantage.
Our professionals have experience working with large-cap, small to mid-cap companies and private equity investors in improving corporate governance practices and structures. We also have the experience of working with corporate boards to undertake meaningful self-assessments and improve their oversight processes.
Our approach to governance transformation is holistic and goes beyond the board of directors and regulatory compliance, encompassing areas such as:
Board operations and oversight
- Board processes and structures
- Board and audit committee effectiveness assessments
- Subsidiary management
- Legal and regulatory
- Integrity and ethics
- Human capital
- Communication and external relationships
Risk and Assurance
- Risk management
- Internal control systems
- CEO, CFO Certification
- Fraud risk management
When do I need corporate governance?
You may consider your business a smallholding, but as the owner of a small company, you may keep it running smoothly and successfully with a minimum of formal structures. But once your company reaches a certain size or state of complexity in its operations, then it needs something more structures to keep it moving in the right direction of:
- Growing in a controlled manner
- Branching out into other products and services
- Finding international partners
- Or merging with other companies
Corporate Governance: In The Best Interests of All Stakeholders
Corporate governance is the framework, or structure, that deals with strategic and operational issues. It is a system that seeks to keep a company running in the best interest of its owners, shareholders, suppliers, customers and any other group or organization with a stake in the company.
Diversity Is Best In Governance Committees
Normally, an advisory committee is formed specifically for the purpose of overseeing corporate governance. The corporate governance advisory committee may or may not directly contribute to creating the company’s overall strategy. But it will certainly work to keep the company on the necessary path toward meeting the goals of that strategy.
For that reason, the best governance committees are made up of individuals with a variety of perspectives and backgrounds, such as legal, finance, operations and accounting. These corporate governance committee members will also have an extensive network of professional contacts.
You might expect formal corporate governance structures to be found mostly in large public companies. However, these structures are also important to medium private companies, which need to compete just as effectively as public ones in a variety of economic and regulatory climates, and varying legal jurisdictions.
Any Nigerian company doing business with significant Turnover or with other international trading partners almost certainly needs a corporate governance advisory committee to guide it through a complex web of regulatory and other requirements and procedures. The same applies to companies in other countries wanting to do business in Nigeria.
Corporate Governance Is Also Needed by Absentee Owners & Family Businesses
Absentee owners typically set up a corporate governance advisory committee to ensure that the company is being run as the owner intends it.
Smaller, family-run businesses can also benefit from a set of formal corporate governance procedures – not only to run smoothly now but also to successfully transition the family-run company from one generation to the next.
This is often handled at a level of corporate governance referred to as a family council. The council may or may not include outside advisors in its meetings.
A&D has a diverse group of partners and associates with experience and backgrounds in a wide variety of businesses across Africa. We are often called upon by companies we work with or know to:
- Offer independent business and management advisory services (Make it a hyperlink to our Mgt Advisory menu on the site)
- Help co-ordinate growth and development
- Provide operational guidelines
- And help set up formal corporate governance structures and procedures
A number of our partners are uniquely qualified to help family businesses, having completed training in the “Family Enterprise Advisor Program” at the Sauder School of Business.
Whatever our role in corporate governance, A&D Forensics’ main goal is to maximize the value of your business.
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