Corporate Governance Statements

Statements on good corporate governance can be derived from two sources:

1. Rule – based Corporate Governance
2. Principles–based Corporate Governance

1)????Rule-based Corporate Governance

Rule-based corporate governance refers to a system of corporate governance that is based on a set of specific rules and regulations. In this approach, companies are required to comply with a predetermined set of requirements in order to ensure that they are operating in a responsible and transparent manner.

Rule-based systems are often seen as providing more clarity and certainty than principles-based systems since they specify exactly what is required of companies in terms of governance practices. This can make it easier for companies to know what is expected of them and to ensure that they are in compliance with the relevant rules and regulations.

2)????Principles-based Corporate Governance

Principles-based corporate governance refers to a system of corporate governance that is based on a set of broad principles or guidelines, rather than on a detailed set of rules and regulations. This approach is designed to promote flexibility and adaptability, allowing companies to develop their own strategies for achieving good governance, rather than having to strictly adhere to a predetermined set of rules.

In a principles-based system, the focus is on ensuring that companies have the appropriate policies and procedures in place to promote good governance, rather than on prescribing specific requirements for compliance. This can allow companies to respond more effectively to changing circumstances and to make decisions that are in the best interests of their stakeholders.