Corporate Governance
/ˌkɔːrpərət ˈɡʌvərnəns/
Definitions
- (n.) The system of rules, practices, and processes by which a corporation is directed and controlled, balancing the interests of stakeholders.
Effective corporate governance ensures accountability and transparency in a company's management.
- (n.) Legal frameworks and mechanisms that regulate the roles of boards, shareholders, and executives in corporate decision-making.
Corporate governance laws vary significantly between jurisdictions, affecting shareholder rights and board responsibilities.
Related terms
See also
Commentary
Corporate governance reflects both formal legal rules and informal practices; drafters often specify governance provisions to clarify roles and minimize disputes.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.