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The law and sound system, by which a corporate is directed and controlled by focusing on both internal, as well as, external structures, with the main intention of monitoring the actions of the management is defined as Corporate governance.
In other words, corporate governance refers to the processes and relations by which a corporate is directed and controlled. Governance prepares a structure to identify and distributes the main roles and responsibilities among different participants in the company, such as shareholders, stakeholders, board of directors, managers, etc., and also includes the procedures for making any decisions in the company.
Corporate governance sets the objectives of a corporate and also defines the steps and processes to achieve these objectives, keeping in mind the market, social and regulatory environment.
It includes the monitoring the policies, procedures, actions and decisions of the company.
There are many benefits of having corporate governance:
- It helps in lowering the capital cost
- A good corporate governance ensures and contributes towards corporate growth and success
- It retains and maintains the investor’s trust and confidence, which helps in raising the capital for the company
- It helps in brand formation and development
- It creates a positives impact on the share prices
- It ensures to minimize the wastage, risk, mismanagement and corruption.
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