CIMA BA4 Syllabus B. CORPORATE GOVERNANCE - CIMA's Practical Proposals for Better Corporate Governance - Notes ^{5 / 8}

CIMA's Proposals

CIMA take the view that good corporate governance is essential to create trust and engagement between companies and their investors, so contributing to the long-term success of the business.

CIMA has therefore come up with practical proposals to bring corporate governance reporting into realistic existence.

The proposals are:

• Tone from the top

  This relates to the chairman’s view on what good governance means to him and his company.

• How the board works as a team

  This relates to how well composed and balanced the company's board is, in terms of skill sets that complement each other.

• The key actions of the board and its committees

  This relates to what the board has been focussing its attention on and whether it is focussing its attention on the right things.

• Board effectiveness

  This relates to whether there is a rigorous process in place to assess how effectively the board and its committees are working.

• Communication and engagement with shareholders