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Smaller companies should be interested in corporate governance as it provides a framework of processes and attitudes that enhance value and ensure long-term sustainability. Effective corporate governance involves having the right people in appropriate roles who collaboratively focus on delivering medium to long-term value. It establishes procedures that promote business value and continuity while improving performance and reducing risks associated with sustainable growth. Recent changes in the UK have expanded the requirement for a formal corporate governance code beyond companies with a premium listing on the London Stock Exchange, to include large private companies as of January 2019.
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