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Best practices in corporate governance are more than simply ticking boxes to comply with the requirements. They are a set of guidelines that can help companies improve their performance and build trust with their shareholders and other stakeholders. They serve as a roadmap to ensure the success of a business. They can be utilized by small or large businesses and privately or publicly owned, and all types of businesses.

Good governance begins with people. Boards need to select the best candidates, design a clear recruitment process and ensure that their employees are fully engaged in their task. They must also ensure that they have the ability to evaluate management practices effectively.

The next step is to develop a system of checks & checks that will minimize conflicts of interest. This includes setting a code of conduct for directors on the board, as well as the audit committee and the compensation committee, and having policies in place that promote transparency and integrity, as well as ethical conduct.

In addition, boards need to have a clearly defined structure for leadership and an independent director who is the lead. This is the case whether the board has a separate or combined chair and CEO. A strong and independent director can be key to establishing a culture of collaboration and cohesion in the boardroom.

Lastly, best practices in governance require boards to communicate regularly and in a transparent manner with shareholders and other stakeholders. It is crucial to release their financial reports and other data readily available. This also includes offering regular updates on the latest or changing governance standards, and encouraging a dialogue among all stakeholders.