What does the term 'corporate governance' mean?

Corporate Governance is the system of rules and processes governing the activities of a business. It is the framework that ensures a company is managed in an ethical and legal way. Corporate Governance provides a set of policies and practices that guide how a company is run, monitored, and accountable. In Oklahoma, the Corporate Governance laws are largely based on the Model Business Corporation Act, adopted in 1976. It is intended to provide a general framework to guide how businesses should be run and to promote transparency and fairness in the business world. The Model Business Corporation Act includes important elements such as the corporate charter, which defines the powers and responsibilities of the company’s directors and officers; the role of shareholders in appointing directors and having a say in decisions that affect the company; and regulations regarding board meetings, the ability of shareholders to inspect records, and other internal procedures. The importance of corporate governance in Oklahoma cannot be overstated, as it has a direct impact on the stability and prosperity of the business and of its employees. The laws ensure that companies are operated effectively and ethically, reducing the risk of insider trading and other unethical practices. Additionally, corporate governance can positively affect a business’s reputation and trustworthiness, which can result in increased investor confidence.

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What does the term 'corporate governance' mean?

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