What is the role of corporate governance?

The role of corporate governance is to establish a framework of rules and processes that guide the activities of a company, including decision-making and protection of the company’s interests. Corporate governance is important for investors, stakeholders, and employees, as it ensures that the decisions made by the company’s management are in line with the interests of those involved. In Washington state, corporate governance is governed by the Washington Business Corporation Act (WBCA), which sets forth the rights and obligations of a corporation’s officers and directors. The WBCA requires that corporate boards of directors and officers act in good faith when conducting business on behalf of the corporation, and that all major decisions must be approved by the board of directors. The WBCA also sets forth the procedures for resolving disputes between shareholders, directors, and officers. In addition to the WBCA, corporate governance in Washington is also subject to federal regulations, such as the Sarbanes-Oxley Act (SOX). SOX establishes standards for financial and accounting practices, as well as protocols for internal control and corporate governance. The purpose of SOX is to protect investors, promote transparency, and ensure integrity in the financial and accounting practices of publicly traded corporations. Overall, corporate governance is an important framework that sets forth rules and processes to ensure the safety and protection of a corporation’s interests. In Washington, corporate governance is largely governed by the WBCA, with additional oversight from federal regulations such as SOX.

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What is the role of corporate governance?

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