Q.Define Corporate Governance.

Corporate governance is the system of rules and processes by which a company is directed and controlled to safeguard the interests of all stakeholders.

Corporate governance refers to the way a company is directed, controlled and administered. It is the framework of rules, practices, systems and processes through which the board of directors and management run the company responsibly.

Meaning and purpose:

• It ensures accountability, fairness and transparency in a company's dealings.
• It balances and protects the interests of all stakeholders — shareholders, employees, customers, creditors, government and society at large. …

Corporate governance = the framework of rules and processes that directs and controls a company for the benefit of all its stakeholders.

In the Tamil Nadu HSC Class-11 Commerce syllabus, corporate governance is studied because a company is owned by shareholders but run by directors and managers — governance is what keeps that gap honest.

• Meaning: It is the system by which companies are directed and controlled, defining the rights and responsibilities of the board, management, shareholders and other stakeholders.
• Purpose: To ensure the company is run in the long-term interest of all who have a stake in it, not just the managers who control it day to day. …