Corporate governance: directors, shareholders and the Audit Committee

Abstract

Discusses the different roles played by directors, shareholders and auditors in ensuring the success of a company. Outlines the responsibilities of the directors, pointing out the risks that directors may bully auditors; also that a persistently questioning director, especially a non‐executive director, will be labelled as a trouble maker and not be listened to. Argues that shareholders and auditors cannot be linked in a way that would effectively supervise the conduct of directors. Concludes that directors need to be properly monitored: shareholders have failed to do this, so the audit committee needs to ensure that directors do their duties. Shows how an effective audit committee can be set up.

Citation

Hemraj, M.B. (2003), "Corporate governance: directors, shareholders and the Audit Committee", Journal of Financial Crime, Vol. 11 No. 2, pp. 150-157. https://doi.org/10.1108/13590790410809077