Corporate Governance

Definition of Corporate Governance as it relates to Business, Business Law, Securities Law

Corporate Governance refers to the system of rules, practices, and processes by which a corporation is directed and controlled. It involves balancing the interests of the company's many stakeholders, including its shareholders, management, customers, suppliers, financiers, government, and the community. Corporate governance aims to ensure that corporations operate in an ethical, transparent, and accountable manner, and that they are able to effectively manage risk, comply with laws and regulations, and achieve their strategic objectives. It encompasses a wide range of issues, including board composition and effectiveness, executive compensation, shareholder rights, auditing and internal controls, and disclosure and transparency.

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