Corporate governance guide for SMEs

by Sophie Mao Lawyer, LegalVision
  • Good corporate governance is important for companies, regardless of their size.
  • For many SMEs, the directors are also the major shareholders so it can be difficult to separate their roles and responsibilities.
  • The goal of this guide is to help you understand roles of directors, shareholders and the company secretary in SMEs and how decisions are made.

Corporate governance is the framework of laws, rules and guidelines through which a company makes business decisions. Directors are ultimately responsible for a company’s decision-making and will refer to this framework when running the company.

For small to medium businesses, good corporate governance is as simple as understanding how decisions should be made and by following the appropriate processes. By doing so, you will be creating accountability and transparency, protecting decision makers and giving confidence to those who deal with (or invest in) your business.  

This guide focuses on decision-making for small to medium private (proprietary limited) companies. The goal of this guide is to help you understand:

  • Who is responsible for corporate governance?
  • Who makes decisions?
  • How decisions are made?
  • How decisions are recorded and implemented? 

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