The corporate governance scandal brought to light many issues which have played an important role in determining the enhancement process addressed by the Government of Malaysia. The fact that agency problems occur between shareholders and mangers and/or shareholders and board of directors these problems were major factors why there was a real need to improve the corporate governance mechanism. The agents or mangers have been accused of not acting on the shareholders best interests. Managers are also blamed for their lack of responsibility for business practices since they do not show the concern as if they were owners themselves. (Extracted from: What Has Changed? The Development of Corporate Governance in Malaysia, Sulaiman Alnasser, 2012, Journal of Risk Finance) REQUIRED: (a) Explain TWO (2) reasons why corporate governance received attention by the Government of Malaysia.
The corporate governance scandal brought to light many issues which have played an important role in determining the enhancement process addressed by the Government of Malaysia. The fact that agency problems occur between shareholders and mangers and/or
shareholders and board of directors these problems were major factors why there was a real need to improve the corporate governance mechanism. The agents or mangers have been accused of not acting on the shareholders best interests. Managers are also blamed for their lack of responsibility for business practices since they do not show the concern as if they were owners themselves.
(Extracted from: What Has Changed? The Development of Corporate Governance in Malaysia, Sulaiman Alnasser, 2012, Journal of Risk Finance)
REQUIRED:
(a) Explain TWO (2) reasons why corporate governance received attention by the Government of Malaysia.
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