Corporate governance is a framework of rules and regulations that governs the leadership, organization, and management of a company. In addition to compliance with laws, rules, and regulations, corporate governance may include compliance with the company’s corporate charter, bylaws, formal policies, customs, and internal processes. The company’s board of directors often directs its corporate governance over a broad range of functions, including financial reporting and disclosures, securities laws, risk management, operating plans and budgets, strategic planning, succession planning, crises management, internal controls, internal audits, preventing foreign corrupt business practices, and executive compensation.

In Arkansas, corporate governance is primarily governed by the Arkansas Business Corporation Act, which sets forth the state statutes for the management and regulation of business corporations. This framework includes provisions for the roles and responsibilities of the board of directors, shareholder rights, and the requirements for corporate bylaws and charters. Companies must also adhere to federal laws, such as the Sarbanes-Oxley Act, which imposes strict financial reporting and internal control requirements, and the Dodd-Frank Act, which addresses issues related to executive compensation and corporate accountability. Additionally, corporations operating in Arkansas must comply with the Securities Exchange Act of 1934 for publicly traded companies, which mandates disclosure and reporting requirements. Corporate governance in Arkansas also encompasses adherence to company-specific bylaws, policies, and internal processes that are established by the board of directors. These may cover areas such as risk management, strategic planning, and crisis management. The board is also responsible for ensuring compliance with anti-corruption laws like the Foreign Corrupt Practices Act. Overall, corporate governance in Arkansas involves a combination of state and federal regulations, as well as internal governance documents and practices.