CORPORATE GOVERNANCE
The way corporations govern themselves has changed dramatically and permanently since the U.S. Congress passed the Sarbanes-Oxley Act in 2002. Corporate governance is most often viewed as both the structure and the relationships which determine corporate direction and performance. The Board of Directors is typically central to corporate governance. Its relationship to the other primary participants, typically shareholders and management, is critical. At Houlihan Smith, we work with Boards of Directors and Special Committees to ensure the installation of processes, customs, and policies, which affect the way a corporation is directed, administered or controlled.
Sound corporate governance is reliant on external marketplace commitment and legislation, plus a healthy board culture which safeguards policies and processes. An important theme of corporate governance is ensuring the accountability of certain individuals in an organization through mechanisms meant to reduce or eliminate the principal-agent problem. Of importance is how directors and management develop a model of corporate governance that aligns the values of the corporate participants, then evaluate this model periodically for its effectiveness.
As corporate responsibility issues fill the headlines, corporate directors are coming under great scrutiny. The fiduciary duties of directors reflect the expectation of corporate stakeholders regarding oversight of corporate affairs. Because of the impact of the Sarbanes-Oxley Act, both governance and compliance issues have become more numerous and more complex. Houlihan Smith provides companies with independent and objective advisory and opinions of value that meet both market and regulatory requirements. Good governance is an essential ingredient in corporate success and sustainable economic growth.
Special Committees and Boards of Directors frequently engage Houlihan Smith to help overcome both common and unforeseen fiduciary pitfalls. Houlihan Smith has provided financial opinions for some of the largest publicly traded companies as well as for complex private transactions. Our experience and understanding in areas of independence and corporate governance is the reason we are a leading provider of financial opinions and valuations.
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