Elements of Corporate Governance
The elements of corporate governance are the three main parts of the system that are the board of directors, management, and shareholders. All these elements come together to make up corporate governance. The Board of Directors is responsible for setting the policies and determining the strategy for the company. Management is in charge of running the day-to-day operations of a company and their responsibility is to execute the Board’s decisions while also providing feedback to them. Shareholders are the owners of a company and they have rights like voting on major decisions like mergers or acquisitions. Together, all three of these pieces form the ultimate governing body for any corporation.
What is Corporate Governance?
Corporate governance, broadly, refers to the structures and processes through which corporations are directed and controlled and the relations among stakeholders of corporations. It includes the functions and duties of boards of directors, executives, and other corporate officers.