The Extent to which Corporate Governance Principles are Mandatory for Iraqi Joint Stock Companies

(A comparative study)

Abstract

The financial and economic crises faced by commercial companies, especially giants, during the recent period in many countries of the world, as a result of manipulating and the credibility of the financial statements of shareholding companies has prompted the concerned national authorities, international organizations and legislators in these countries to conduct in-depth studies to find appropriate solutions to avoid these crises and achieving stability in the national and international markets.

The result of these efforts was the adoption of the corporate governance system to prevent or reduce financial crises through a set of mechanisms, most notably transparency and real disclosure of financial and non-financial information and activating internal and external control over its business to reduce fraud and manipulation, as well as activating the role of the Board of Directors in it to protect the rights of shareholders And those dealing with the company.

These efforts were embodied in either legislation a system of governance and obligating companies to work with it, or amending or enacting new companies laws by adopting the rules and mechanisms of governance in these laws.