Corporate governance is a system of processes and practices set up by a firm or organisation intended to maintain control over it. In other words, corporate governance is the structure of rules, practices, and processes used to direct and manage a company.
Corporate governance provides the framework for attaining a company’s objectives, and so it encompasses practically every sphere of management, such action plans, internal controls, corporate strategy, risk management and other such areas. The company’s board of directors is the primary force influencing corporate governance.
In Malta, corporate governance has become an important topic at all company’s boards meeting. The business world is constantly evolving, corporate governance is now essential and should not be neglected. The directors’ roles have become more and more prominent in any organisation that is why good corporate governance has become a top priority.
As part of having good corporate governance, we can highlight the importance of the following requirements:
- Having a solid and up to date corporate structure in place.
- Ensuring that all board of directors meeting minutes are recorded.
- Ensuring that all resolutions are filed properly.
- Ensuring that the annual general meeting is held, as this is a compliance of a Malta-registered company.
- Making sure that all statutory requirements are carried out and submitted to the respective departments: VAT, tax, and the registrar, Malta Business Registry.
All the above is done not only to have an effective system in place at a board of directors’ level but also as adherence to the administrative rules and guidelines required by Maltese legislation. Board meetings are an effective way to keep a strong corporate governance system for the company.
In general, corporate governance leads to a healthy business environment which ultimately gives substance to a business. This will guarantee a professional and serious image for the company when you’re about to present your business to new suppliers, new clients, hold meeting with new banks and so on.
As a corporate service provider and accounting firm, Fairwinds Management can assist your firm with company administration services such as drafting board resolutions, preparation of minutes from the board of directors meeting, submission of documents to the Malta Business Registry and more. For more information, please contact our Director Ms Joceline Caruana on firstname.lastname@example.org.