The present paper focuses on the corporate governance practices of the State-Owned Enterprises (SOEs) of Ghana. The three pillars—clear objectives, political insulation, and transparency—are found to be the critical foundations upon which any serious attempt to improve the performance of SOEs in Ghana and developing countries must be based. They reinforce each other and are part of an integrated package. When governments adopt only some of these reforms, such as establishing a clear mandate without sufficient transparency, the results are usually disappointing as can be found in Ghana and most African countries. These reforms may require a tremendous political commitment to implement. However, a system of professional oversight that includes checks and balances is the best recipe for countries in Africa and other emerging markets where privatization is not encouraged.

The wave of corporate corruption scandals has highlighted the importance of good corporate governance, especially in recent years (Standard and Poor’s, 2004). The Cadbury Committee (1992) defined corporate governance as the systems used to direct and control companies. It is concerned with the processes and structures through which members interested in the overall wellbeing of the firm take measures to protect the interests of the stakeholders (Ehikioya, 2009).

Corporate governance is topical among shareholders, regulators and society at large and received increased attention in the past decades (Smolo and Smajic, 2011). Good corporate governance is demanded from the company directors and management, as well as other important actors (stakeholders) such as the employees, government and the public. The newest global financial crises circa 2008 (subprime mortgage in the USA) and the collapse of big corporations, i.e., Lehman Bros., JP Morgan, Morgan Stanley and others, due to fraudulent activities and mismanagement (Enron, Arthur Anderson and WorldCom) have put corporate governance in the limelight more than ever before (Myers and Ziegenfuss, 2006; Young and Thyil, 2008; Dalton and Dalton, 2010; and Yaacob et al., 2012). Most are the results of ethical ‘scandals’ (Karns, 2011). There has been an increase in the number of government reports, stock exchange regulations (Sarbanes-Oxley in the USA) and literature on contemporary board roles and how it can become more effective (Strikwerda, 2003; Myers and Ziegenfuss, 2006; Dalton and Dalton, 2010; and Strebel, 2011).

Corporate Governance Journal, Organization for Economic Cooperation and Development (OECD), Board of Directors (BODs), Global Perspectives, Corporate Governance of SOEs, Corporate Governance Practices, State-Owned Enterprises , Ghana, State-Owned Enterprises (SOEs).