Corporate governance refers to the set of procedures, structures, and processes that a business employs to manage risk and ensure accountability. Its purpose is to provide the foundation for long-term success and reduce the possibility of financial loss, waste, risks and corruption.

Transparence, fairness and diversity are the fundamental principles of corporate governance. These principles are derived from the idea that management and the board must treat all stakeholders equally and fairly, including employees and shareholders. This includes establishing, sustaining and setting up a formal and transparent process to select, oversee and monitor critical board members and executive members their performance. It is also about ensuring that the remuneration of key executives and the board is in line with the long-term interests of the company and ensuring that they have the proper supervision to prevent conflicts of interests.

Transparency is about being open and willingly sharing accurate information with all SaaS acquisitions stakeholders, including shareholders. This means that the company is willing to an organization to disclose both positive and negative news. It also means sharing this information on a regular basis and making it readily accessible.

Depending on the company type various boards and committees could play a role in corporate governance. The board’s job is to establish and supervise an official governance system. This includes appointing a lead director or director who is the presiding one if the board structure is one where the chair and CEO are merged. It should be independent from the chair, and serve a set term. The lead director is also responsible for implementing the governance policies and procedures that are in line with the business’s legal, regulatory and cultural environment.