Effectiveness of board of public enterprises: An internal control mechanism of corporate governance

Effective corporate governance and board of directors’ performances are key elements for the success of public sector enterprises. Boards fiduciary capacity would benefit enterprise in longterm through creating value and ensuring social justice. However, at the same time, corporate governance practices at PEs should have internationally accepted and based on accountability, probity and greater transparency. As corporate governance set up the relationships amongst management and stakeholders about the organisational objectives, it should also include the practices of organizations about, how it should be directed, controlled and held to account for public. Role of Board of directors in public sector enterprises is very significant. Fiduciary responsibilities of directors, apart from other functions, assure effectiveness of internal control system for good governance in the enterprise. Board should make every effort in adding value to the organisation. Effectiveness of Board members would improve through proper induction, training and ensuring good code of conduct in the organisation. Further, it is also necessary to have details of board members interest on item of the Board meeting as well as affairs of public enterprise.