What is corporate governance?

Corporate governance refers to the set of laws, rules, and regulations that determine how a corporation is managed and held accountable. It is an important part of business formation law in California, as it helps define how corporate decisions are made and how the various stakeholders in the corporation interact. At its most basic, corporate governance is the system of rules that lays out the rights, responsibilities, and accountabilities of the board of directors. This includes rules governing how the board is appointed, how it makes decisions, and how it oversees the activities of the corporation. Corporate governance also affects the relationship between the corporation and its shareholders, and includes rules regarding how shareholders can exercise their rights, such as voting on issues or electing board members. Corporate governance provides an important way to protect the interests of all stakeholders, including shareholders, employees, and customers. It also helps ensure that the corporation is managed in an ethical and responsible manner. Good corporate governance helps ensure that the corporation complies with applicable laws and regulations, and helps promote transparency and accountability.

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What is corporate governance?

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