Corporate Governance



Introduction

Governance involves setting policy, supervising its implementation, and verifying that the policy is administered properly.113 Governance processes vary by type of organization. For government agencies, governance is the process by which government policies are implemented, monitored, and enforced. For entities organized as state-owned enterprises or corporations, governance is how the interests and policies of government shareholder are represented, implemented, monitored, and enforced. For private railways, governance processes are how shareholder interests are represented and protected. Governance is a means to ensure that the organization is implementing shareholder-set policy, conducting business lawfully, and performing according to expectations.

Most railways are now organized as state-owned or private corporate enterprises. This section will describe how corporate enterprise governance processes work.

    


113 OECD Principles of Corporate Governance, (2004). http://www.oecd.org/dataoecd/32/18/31557724.pdf
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