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Comparison

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Corporations are part of every society and are the livelihood of many communities. They mobilise and combine capital, raw material, labour, management expertise and intellectual property from a variety of sources to produce goods and services that are useful to members of society. Corporations purchase goods and services, generate jobs and income, distribute profits, pay taxes, and contribute to foreign exchange.26 In general terms, corporate governance provides guidelines for all corporate participants as regards their rights, obligations and accountability, as well as processes for identifying and evaluating challenges encountered in the corporate sphere.27 Considering the purposes that corporations serve on a community level and the impact that they can and do have in society, it makes sense to have strong regulations governing how they function financially, politically, and even ethically.28 Corporate governance is a fashionable, albeit ambiguous, concept.29 There is no universally accepted definition of corporate governance. In general terms, it refers to ‘a set of rules and incentives by which management of a company is directed and controlled’.30 According to Professor John Farrar, corporate governance, in its narrow sense, refers to control of corporations and systems of accountability.31 Accountability is encompassed not only in terms of legal restraints, but also in terms of self-regulation and the norms of so-called ‘best practice’.32 An important aspect of corporate governance is the companies’ legislation, but it also transcends the legal control of corporations to regulate de-facto control of corporations.33 Sheridan and Kendall34 assert that achieving good corporate governance requires a system of structured operating and controlling to fulfil the following objectives:35 (a) achieving a long-term strategy of goals of the owner which may be maximising

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