How important is a strong system of 'corporate governance' in the current business environment?
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Question: How important is a strong system of 'corporate governance' in the current business environment? Corporate governance is a process which is concerned about how corporations are managed, how managers are governed, what questions face by boards of directors and the accountability a corporation has to shareholders. From our point of view, proper corporate governance must address how legitimate interest of minority investors are both protected and promoted. All too often, managers and / or majority shareholders treat the company and its resources as their own, without regards for what is best for all shareholders. With markets becoming increasing sensitive to company misbehaviour and corporate governance violations, reports of abusive behaviour often quickly result in price crashes. The most unfortunate aspect of all this is that it is often the small retail investors that get hurt the most. Definitions of corporate governance Corporate governance is the system by which companies are directed and controlled. (Cadbury...


