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Corporate Governance

Corporate governance
refers to the system by which corporations are managed and controlled. It guides the relationship among a company's shareholders, board of directors and senior management. These relationships provide the framework within which corporate objectives are set and performance is monitored. Three categories of individuals are key to corporate governance success: 1) the common shareholders, who elect the board of directors, 2) the board of directors themselves, 3) top executive officers led by the CEO." It is necessary to emphasize that corporate governance is an important issue for all corporations. After a series of recent scandals involving Enron, WorldCom, Tyco, etc, there has been a renewed interest in corporate governance. The Sarbanes-Oxley Act, passed by the US Congress in 2002, focuses on combating corporate and accounting fraud and imposes new penalties for violations of securities laws.
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Approximate Word Count: 4049
Approximate Pages: 17 (250 words per double-spaced page)

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