Governance in group entities still a potential weak spot
Parent boards must be aware of the financial and reputational damage a problem at a subsidiary can cause and take proactive steps.
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COMPANIES still have a long way to go to improve corporate governance standards at their subsidiaries, according to governance experts.
Some large multinational corporations have recognised that the governance of group entities or subsidiaries can be a significant problem and have started to take action to improve their internal processes and procedures to address the issues.
"But it seems it is still only a minority of companies that accept that theirs is a problem," said Chris Bennett, director at BPA Australasia, a South-east Asian enterprise that promotes improvements in corporate governance through research, professional education and advocacy in boards and senior management.
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