Corporate Governance

Corporate governance is the collection of mechanisms, processes and relations used by various parties to control and to operate corporations.

• Need quotation to verify
• Governance structures and principles identify the distribution of rights and responsibilities among different participants in the corporation (such as the board of directors, managers, shareholders, creditors, auditors, regulators, and other stakeholders) and include the rules and procedures for making decisions in corporate affairs.
• Corporate governance is necessary because of the possibility of conflicts of interests between stakeholders
• Primarily between shareholders and upper management or among shareholders.

Corporate governance includes the processes through which corporations' objectives are set and pursued in the context of the social, regulatory and market environment. These include monitoring the actions, policies, practices, and decisions of corporations, their agents, and affected stakeholders. Corporate governance practices can be seen [by whom?] as attempts to align the interests of stakeholders.

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