Study: Room for improvement in group governance

A new study on governance of company groups has found that subsidiaries and group entities under a parent company should improve their disclosures of key measures they have put in place to ensure good governance of the entire group. It has also found that regulators should review corporate governance rules and guidelines to ensure that boards of parent companies recognise the importance of providing adequate oversight and guidance for entities throughout the group.

The study also discusses major corporate governance problems affecting company directors and individuals arising from the establishment of group entities.

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