Company regulations and Corporate Governance

Company regulations and Corporate Governance

What is the single objective of the firms?

- profit or Wealth Maximization?

What is legislations governs federally registered companies ?

Ethiopian corporation act or Canada business Corporation act or others

Company regulations and Corporate Governance

What is the single objective of the firms?

- profit or Wealth Maximization?

What is legislations governs federally registered companies ?

Ethiopian corporation act or Canada business Corporation act or others

Company regulations and Corporate Governance

What do shareholders do?

• Appoint directors to manage company on their behalf
• Have no management rights
• Receive annual report with financial statements
• Hold annual meeting to elect directors, ratify dividend, appoint auditors

What do directors do?

• Can authorize company borrow money
• Must keep accounting records and produce financial reports in a specified format
• If the company makes profit, they can recommend dividends be paid