Best practices for directors to ensure effective corporate governance
Directors Training Programme / Good Practices for directors
SINGAPORE 新加坡
2/21/20242 min read
Good governance for directors is of paramount importance for several reasons:
Control and Responsibility:
Regular board meetings and a clear understanding of responsibilities ensure that directors maintain control over the business.
Directors play a crucial role in risk management, safeguarding the company’s interests.
Effective Decision-Making:
Robust governance processes facilitate sound decision-making.
Well-defined practices prevent malpractice allegations and uphold corporate duty.
Risk Mitigation:
Transparent governance acts as the first line of defense against risks.
It helps identify and address issues promptly.
Reputation and Culture:
Good governance builds a positive reputation for the organization.
It fosters a healthy organizational culture.
Business Sustainability and Profitability:
Compliance with statutory and regulatory obligations reduces risk.
Progressive governance practices enhance corporate diversity, green initiatives, and fair supply chains, appealing to investors.
Global Competitiveness:
Effective governance positions companies for long-term success.
It ensures prudent financial management and resilience in a competitive global economy.
In summary, maintaining good governance empowers directors to steer companies toward excellence, trust, and sustainable growth.
To ensure effective corporate governance, here are some key guidelines:
Duties and Responsibilities:
Directors must be aware of their legal duties, which include:
Acting in good faith and in the best interests of the company.
Exercising due care, skills, and diligence in decision-making.
Avoiding conflicts of interest.
Directors Duties in relation to Financial Reporting (acra.gov.sg)
Singapore Institute of Directors (SID):
The SID provides guidance through its Statement of Good Practice for directors. This document aims to raise standards of corporate governance and serves as a guide for SID members.
We also suggest to attend Free online training for company directors here - Directors Training Programme (acra.gov.sg)
Newly appointed and aspiring company directors can sign up for ACRA’s free online Directors Training Programme to better understand your statutory duties and responsibilities. This programme also includes important information from other government agencies and will take about two hours to complete.
Under the Directors Training Programme, you will learn:
· The requirements to be a director
· Key duties and responsibilities of a company director under the Companies Act
· Important information on filing corporate income tax returns
· How to contribute to your employees’ CPF
· How to ensure workplace safety and healthAdditional Resources:
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