Fin Project Essay Example | Topics and Well Written Essays - 2500 words

Fin Project - Essay Example The QFMA Code encourages companies to consider and implement voluntarily the appropriate policies, about the companys circumstances, even though the Code is not prescriptive yet. The article mainly aims to compare the QFMA Code with the international benchmark of the Principles of Corporate Governance of the OECD of 2004, so as to develop recommendation to the on how the QFMA can strengthen their corporate governance framework. The article first looks at a brief overview of the QFMA Codes. This is done with respect to the major issues of the duties of the director, mechanisms of control, rights of the shareholders, disclosures, compliance and corporate governance. The benchmarks in the OECD Principles are used to compare these key areas. Finally, the article looks at the recommendations about how the QFMA can be able to meet the set standards by the OECD Principal, and help in strengthening the corporate governance framework of the Qatari (Zain, 2011). Corporate governance can be dated back to the 19th Century when there was the introduction of the agency theory on the background of public corporations. There was a great need to separate functions from those functions of the owners and maintain some control over management performance (Gregary, 2000). Corporate governance encompasses the mechanism of control for a business that is organized in a limited liability corporate. Other people consider corporate governance to be a set of rules, regulations and voluntary practices that are aimed at resulting in the best performance by humans and maximizing the entitys net worth through securing and safeguarding its interests (Chee, 2002). Various scholars have overviewed different theoretical perspectives on corporate governance and further elaborated within various domains (Kirkpatrick, 2005). All this results from the corporate governance ground and its