Why corporate governance is needed?

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In your opinion, what makes corporate governance important and makes it useful? I can understand that is an important thing for companies nowadays but why?

Category: asked December 2, 2012

1 Answer

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The problem arises when there are conflicted interest between the management and the shareholders.

Corporate Governance are regulations, rules and systems that are in place to ensure that the management promotes the interest of the shareholders (and the stakeholders in general), it acts in an ethical way, it is held accountable for it actions and it promotes transparency.

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