Corporate Governance and Legal Audits

Corporate Governance
Corporate governance is the system of rules, practices and processes by which a company is directed and controlled. Corporate governance essentially involves balancing the interests of a company’s many stakeholders, such as shareholders, management, customers, suppliers, financiers, government and the community.
A Corporate Governance audit entails reviewing a company’s structures, practices and processes against certain international benchmarks to check for compliance and consistency with international Corporate Governance standards and guidelines. In so doing, we help our clients to assess and understand their corporate governance compliance levels. A corporate governance audit will typically examine certain defined parameters for compliance with specified local and international benchmarks such as the ICPSK Governance Standards and Guidelines, the Mwongozo Code of Governance for State Corporations, the Code of Governance for Private Organizations in Kenya and the Code of Governance for Listed Companies in Kenya. Annual Corporate Governance audits are currently mandatory for all listed companies in Kenya and the plan is to make the audits mandatory for all corporate entities in the near future.

Legal Audits
A Legal Audit entails assessing and evaluating an entity’s level of compliance with local laws and regulations. For a company to operate legally, it needs to comply with all laws and regulations that affect its business for example Labour Laws, Safety and Occupational Hazards Laws, Income Tax Laws, Environmental Laws, Intellectual Property Laws and Laws that are specific to its industry or sector. At the end of the exercise, we provide our clients with a Level of Compliance report that advises them on gaps identified and remedial measures recommended for implementation.