The Legal Authorities of Corporate Governance of Boards of Directors in Commercial Companies and Their Role in Combating Corruption

Abstract

Corporate governance of boards of directors in commercial companies has become an urgent necessity for combating corruption in the private sector, particularly in the aftermath of successive global financial crises. This study aims to define the concept of governance within boards of directors of commercial companies and to clarify its role in combating corruption. It also highlights the legal authorities associated with it. Furthermore, it intends to demonstrate mechanisms of integrity, transparency, and the strengthening of oversight functions. The central problem of the study revolves around the extent to which governance in boards of directors of commercial companies contributes to curbing corruption. The study adopts the descriptive-analytical method, through describing, analyzing, and discussing a number of published research papers in specialized academic journals, in addition to relevant studies and legislations, in order to achieve its objectives. The findings indicate that corruption in the private sector, particularly within commercial companies, is the most widespread, due to the broad scope and diversity of this sector, as well as its tangible influence on shaping government policies. Such corruption is often exercised in the management of both official and unofficial transactions. The study recommends that the Yemeni legislator review and amend the relevant laws and regulations in line with current requirements, and incorporate the concept, principles, authorities, and mechanisms of governance into the Yemeni Companies Law and related legislations. This is essential to safeguard shareholders’ rights vis-à-vis boards of directors and to contribute effectively to the reduction and prevention of corruption.