Resources > Corporate Governance > Letter & Spirit

Letter & Spirit


The object of corporate governance is to obligate companies and their boards of directors to ensure that proper information is made available to shareholders and that their best interests are met.

Many current problems faced by companies are based on whether the company is really committed to good corporate governance or whether they are just paying lip service to it - the difference between the letter and the spirit. When it comes to taxation, the letter of corporate governance is often met by companies through a single line in their prospectus or accounts pointing out to the shareholder the potential impact of taxes on their investment. We believe that the spirit of corporate governance is more adequately met by proactive education, information on impact and, where appropriate, active facilitation of the tax recovery process. It costs the company nothing and can create a major benefit to shareholders.

The reality is that losing out by as much as 35% on investment return should be headline news. The question is what can be done to encourage directors to treat investors equally and provide best value.

After all, if the company wants to maintain good relationships with its shareholders and potentially attract new ones, the degree to which it exceeds its shareholder's expectations, is a measure of its long term success and growth. Isn't exceeding expectation what most companies try to do for their customers?

If you are an issuer and you would like to know more about GlobeTax's shareholder value programs, please contact us.

As for shareholders, click here for more information.







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