Corporate governance and compliance: understand the main differences

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As modern concepts and practices, corporate governance and compliance are essential for any company that wants to grow or remain in the market . We highlight both the implementation and the theoretical aspects, because more than knowing what they mean, it is necessary to put their guidelines into action.

However, one obstacle to this objective is the lack of knowledge of what they are and, mainly, what the distinctions are between each one, since they are related concepts and, in certain situations, dependent.

To clarify the main doubts about these two practices, we will explain in kuwait phone number list text what they are and their differences. Keep going!

What is corporate governance?
Corporate governance can be defined as the way in which companies are managed, controlled and incentivized. It involves a series of agents, such as shareholders, management, board of directors and supervisory bodies, among others. It is also linked to decisions made by or under the influence of these elements, transforming them into real actions.

Therefore, governance can be divided into four stages:

shareholders — here, the partners and other parties that own the company's shares are included , including other companies (they are responsible for choosing the members of the administrative and fiscal board);
board of directors — chosen by the shareholders, this part includes the administrators who will be responsible for defining the guidelines and controlling the management of the company, choosing the members of the board of directors (part composed of the president, vice president, CEO, among others);
fiscal committee — also defined by the shareholders, the members are responsible for monitoring the company, mainly in relation to legislative and fiscal conduct (as it serves as a type of supervisory body, its audit is independent;
external audit — also known as independent, is carried out by professionals who do not work in the organization and are hired to check and monitor the company's accounts, attesting whether they are complying with the legislation (this is where compliance fits in).