The Organisation of Economic Co-operation and Development (OECD) was established in 1961. The OECD was one of the first non-government organisations to spell out the principles that should govern corporate. What are the

The OECD Principles of Corporate Governance set out a framework for good practice which was agreed by the Governments of all countries that are members of the OECD. They were designed to assist Governments and Regulatory bodies in both OECD countries and elsewhere in drawing up and enforcing effective rules, regulations and codes of corporate governance. The OECD Principles of Corporate Governance are: Ensuring the Basis for an Effective Corporate Governance Framework: The corporate governance framework should promote transparent and efficient markets, be consistent with the rule of law and clearly articulate the division of responsibilities among different supervisory, regulatory and enforcement authorities. The Rights of Shareholders and Key Ownership Functions: The corporate governance framework should protect and facilitate the exercise of shareholders' rights. The Equitable Treatment of Shareholders: The corporate governance framework should ensure the equitable treatment of all shareholders, including minority and foreign shareholders. All shareholders should have the opportunity to obtain effective redress for violation of their rights. The Role of Stakeholders in Corporate Governance: The corporate governance framework should recognise the rights of stakeholders established by law or through mutual agreements and encourage active co-operation between corporations and stakeholders in creating wealth, jobs, and the sustainability of financially sound enterprises. Disclosure and Transparency: The corporate governance framework should ensure that timely and accurate disclosure is made on all material matters regarding the corporation, including the financial situation, performance, ownership, and governance of the company. The Responsibilities of the Board: The corporate governance framework should ensure the strategic guidance to the company, the effective monitoring of management by the board, and the board's accountability to the company and the shareholders.