1. Business Monitoring and Regulation
Introduction
The Stock Market was established as the most efficient tools of mobilising as well as
redistributing the required capital for improvement of the economy. Exactly the same can be
said for both established and developing countries and the Ghana Stock Exchange is not
really an exception. Since the importance, scale and strength of the stock exchange in
Ghana grows from day to day, so is also the potential risks related to growing by investing in
the country economy through the foreign exchange market. The Securities and Exchange
Commission of Bekwai, ghana (SEC) plays the vital monitoring and regulatory roles of
making sure that companies on the exchange follow guidelines which protect the significance
of investors' portfolios.
The effectiveness of the SEC in monitoring is nevertheless restricted to what is the value of
revealed to it by performance earnings of listed businesses through when these returns will
be filed. The actual SEC may also move in to check into those activities of a listed company
and their Manuel a member of board of directors in the instance of a complaint from your
interested party. In this article you will find numerous examples in economic history to
demonstrate that as energetic as regulatory body may be, corporate as well as managerial
malfeasance may persist for very long periods and may be detected only after irreparable
losses of investment value occurred. A few examples of corporate finance upheavals are
Enron, Kmart and Worldcom in the usa as well as for more recent examples we have Soceite
Common (SG) and also the Samsung Companies in France and Korea.
In all the examples made over, business governance issues had been in the base of the
crises which battered the trader confidence during these companies, making some of them
into personal bankruptcy. These downturn arose underneath the eyes of instead strong
regulatory routines. Using the CAL Merchant Bank governance issues growing, the Ghanaian
investor community may have realised that business governance based crises are not any
more financial information form afar and well removed from us but a real possibility that
people need to be ready to prevent or manage when they happen.
The question is then put as to that has the capability and primary responsibility to avoid these
corporate downturn from happening? Is it government, shareholders, creditors, the board of
directors, management or employees? It is true that every of the previously discussed
categories have passions in the survival of a company or perhaps a business. The
government is thinking about taxes and employment capacity; investors in the value of their
investment decision; management within their incomes, perquisites and managerial
reputation; employees in size of their wages and the security of the jobs; lenders towards the
tune of their credit and interests accrued. Each one of these categories mentioned compete
for value created by the business inside a period of time by using resources procured based

2. on investment and business decisions taken. The size of value created usually depends on
the quality of these investment and business decisions of procured resources within certain
business environment (political, interpersonal, economic as well as technological). The body
tasked to consider investment and primary business decisions and to procure or help the
procurement of all resources essential for the creation valuable by a corporate body is the
board of directors.
The majority of limited liability businesses acquire ownership separated through
management team.