Corporate Governance – Issues And Solutions

Corporate governance is "the system through which those involved in the company's management are held accountable for their performance, with the aim of ensuring that they adhere to the company's proper objectives."[1] In its strict sense, it is a set of regimes, policies and regulations in order to regulate, organize, manage and supervise operation of a company. The broadest meaning of this concept even expands to how the company interacts with suppliers, customers, creditors or the government agencies. In both senses, effective corporate governance and a sound legal framework on the same are critical for development of not only companies but also the business community in a relevant jurisdiction.