Corporate Governance

corporate governance

Governance is the mechanisms and processes by which a company or organisation is operated.

Governance principles recognise the rights and responsibilities of various individuals, and their associated roles, within the company. The roles we see discussed most are directors, board members, shareholders, and other stakeholders.

Corporate governance practices can be seen as attempts to align the interests of stakeholders.

Corporate governance includes the processes through which corporations’ objectives are set and pursued in the context of the social, regulatory and market environments. These include monitoring the actions, policies, practices, and decisions of corporations, their agents, and affected stakeholders.

Corporate governance aims to protect shareholder rights, enhance disclosure and transparency, facilitate effective functioning of the board and provide an efficient legal and regulatory enforcement framework. Corporate governance is necessary because of the possibility of conflicts of interest between stakeholders, primarily between shareholders and upper management or among shareholders.

Good corporate governance should encourage shareholder participation and provide proper incentives for the board and management to follow objectives that are in the interests of the company and its shareholders.

There are several differing criteria used to assess and measure a company’s corporate governance frameworks. Several factors that are typically considered in the assessment of a corporation’s governance standards include the following:

  • board structure and accountability
  • financial disclosure and internal controls
  • shareholder rights
  • executive compensation
  • ownership structure and related parties
  • social and environmental impact.


Corporate Governance relies on Clinical Governance Frameworks in place.