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Principle, Module and Framework Of Corporate Governance On

Public Enterprises/ Manufacturing Sector


Presentation By Bikash Neupane Manisha Shrestha Mohommad Ishak Sagun Shrestha
10/4/2013

Public sector governance covers:

the set of responsibilities and practices, policies and procedures, exercised by an agencys executive to provide strategic directive, ensure objectives manage risk and use resources responsibly and with accountability.

CG

is a systematic process by which companies are directed and controlled to

Also encompasses role of leadership responsibility of all public servants

enhance there wealth generation capacity

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Good governance is about:


Performance how an agency uses governance arrangements to contribute to its overall performance and the delivery of goods, services or programs. Conformance how an agency uses governance arrangements to ensure it meets the requirements of the law, regulations, published standards and community expectations of probity, accountability and openness.

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Public Governance and Corporate Governance


Public Governance System Public Corporate Governance System Shareholders

People's Representations (MPS, Parliament) Council of Ministers (Cabinet) Prime Minister

Representations (BOD) Executive Board

CEO/MD/ED

President

Chairman

Ishak

Bikash

Sagun

Manisha

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Principles Of Corporate Governance


The framework is underpinned by six foundation principles of governance: 1. Accountability 2. Transparency and openness 3. Integrity 4. Stewardship 5. Efficiency 6. Leadership

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Corporate GovernancePrinciples for the Public Sector


Generally derived from the private sector Ensures public accountability Promotes responsive and accountable institutions

Good financial management of resources


Good stewardship
Responsibility to protect the wealth of the state and its citizens
Maintain and safeguard it in the interest of the citizens

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O: Observed LO: Low Observed PO: Partially Observed MO: Materially Observed NO: Not Observed
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O: Observed LO: Low Observed PO: Partially Observed MO: Materially Observed NO: Not Observed
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Ishak

Bikash

Sagun

Manisha

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CORPORATE GOVERNANCE Modules of Best Practices


Corporate Governance Framework

Board Effectiveness

Transparency & Disclosure

Corporate Governance
Model Statements, Policies & Practices

Secretarial Standards CSR & Sustainability

Source: ICSI
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The private sector model view shareholder as main stakeholder In public sector specific users group those directly responsible for funding and the community at large assume great importance as stakeholder Stewardship and accountability of use of funds and assets is particularly important in public sector Maintain faith in system and promote better service to the public sector to maintain faith in the system and promote better service to the public
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The new corporate governance framework

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CG in Public Sector Framework


The elements CG framework are:
1. 2.

3.
4. 5.

6.
7.

Direction Alignment Accountability Expectations Delivery Improvement Risk management

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Ishak

Bikash

Sagun

Manisha

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What is Public Enterprise?


Government owned undertakings/enterprises or stateowned enterprises. Formed under the legal proceedings, wholly or partly owned and controlled by the government and produce marketable goods and services, Have an explicit or extractable budget, and are supposed to finance their operating costs from their own resources.

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CG in Public Enterprise

Regulatory bodies fail to enforce corporate governance code -Himalayan Times, 2012/8/29

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Conclusion
Only improvement in the policy cannot ensure good governance, leadership commitment is equally necessary. CG of Nepal benchmark the OECD principles.

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Good institutional governance should be instilled by


the development of governance systems in ministries and authorities, with the aim of focusing on enhancing the quality of public services consistent with citizen expectations, promoting compliance and conformance, with appropriate transparency and

flexibility.

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THANK YOU
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