Corporate Governance (CG) is the implementation by top management of a set of rules and regulations to ensure that an organization functions in the best possible way. This practice responsibly looks after the interests of shareholders, key people, the management team and customers. In the new scenarios, Corporate Governance in the midst of technological evolution also means new value for organizations.

This was the main topic of a new edition of the Breakfast of the Month organized by the American Chamber of Commerce of El Salvador. Our partners, Hector Torres and Raquel Santos, were the speakers at the event.

Hector Torres opened the conference. He exposed the areas that collect standards and rules of CG, such as: relationships and behavior of senior management; forecasting and management of business risks; management of business communication; and financial reporting.

However, in the new scenarios, CG picks up areas such as technology, cybersecurity, data digitization and regulatory updates that will help organizations, regardless of their size, to be more efficient and improve service to their customers.

“Technology to improve Corporate Governance will help information management, encourage staff engagement, become more efficient in the delivery of goods and services and protect from cyber-attacks,” he explained to the attendees.

Torres also stated that there is business disruption, giving as an example the DTL and Blockchain that ensure that the way of safeguarding information and its immutability; or the Decentralized Autonomous Organization that works through smart contracts that allow agility in decision making under confidential mechanisms and more impervious to corporate pressures.

Raquel Santos closed the conference. Our partner indicated that businessmen have to know that, in order to operate the organization, they must organize it. In that sense, they must ask themselves who participates and who makes the decisions.

“There must be business harmony between management, its investors and those who run it, so that good communication flows, they get involved in the processes and can move the organization forward,” Santos told the audience.

To lay the foundations for Corporate Governance, our expert said that companies must ensure and facilitate the participation of shareholders in decision making, giving equal treatment to each one of them, regardless of the percentage of investment they have in the company.

This means that, regardless of its size or the activity it engages in, any organization has CG when applying and defining the form of administration. What will change are the parties involved in the company’s activities and the distribution of responsibilities.

Santos stated that the participants in the corporate governance structure are: the partners and shareholders; the board of directors; members of senior management; and related third parties in reference to external control systems.

For Raquel Santos, Corporate Governance in companies helps them to be perceived with greater confidence, to have access to better conditions in the markets, to have more shareholders willing to invest and to be a “magnet of attraction” for qualified professionals.

Torres Legal thanks the American Chamber of Commerce of El Salvador for the space to speak at the December Breakfast of the Month, as well as our clients, allies, colleagues and members of the chamber who attended the informative day.

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