Governance Reform

In its simplest terms, governance can be defined as the authority structure of an organization.  It is a structure that is legally responsible for making certain decisions, under certain conditions, and within defined guidelines.  This structure is also dynamic and not static. The turbulence leading up to and following the enactment of Sarbanes-Oxley legislation in 2002 has made this apparent.  But in order for governance to be relevant and effective, the board, responsible for making judgments and carrying out decisions in the best interests of its shareholders, must be dynamic and adaptable, as well. This is at the core of successful governance reform.