What is corporate governance for dummies

  • What is the simple definition of corporate governance?

    Corporate governance is the system by which companies are directed and controlled.
    Boards of directors are responsible for the governance of their companies.
    The shareholders' role in governance is to appoint the directors and the auditors and to satisfy themselves that an appropriate governance structure is in place..

What are examples of corporate governance in action?

Examples of corporate governance in action include:

  • a board of directors discussing the potential risks and rewards associated with a decision
  • such as :
  • an acquisition or merger
  • or conducting employee assessments.
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    What is corporate governance?

    Corporate governance is the system by which a company is directed and controlled.
    It refers to the structure of authority and responsibility within a private or public company, as well as the processes and procedures put in place to ensure the company is run effectively.


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