Do we need corporate governance or educated customers?

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Dimpy Handa
Corporate governance refers to the manner in which a corporation is directed, and laws and customs affecting that direction. It includes the laws governing the formation of firms, the bylaws established by the firm itself, and the structure of the firm. Issues of fiduciary duty and accountability are often discussed within the framework of corporate governance.
In the United States, a corporation is governed by a board of directors, which has the power to choose an executive officer, usually known as the chief executive officer. The CEO has broad power to manage the corporation on a daily basis, but needs to get board approval for certain major actions, such as hiring his/her immediate subordinates, raising money, acquiring another company, major capital expansions, or other expensive projects. Other duties of the board may include policy setting, decision making, monitoring management's performance, or corporate control.
 
Fundamentally, there is a level of confidence that is associated with a company that is known to have good CG. Transparent company's governance policies are crucial, as long as information is made readily available to investors and shareholders.

Article Source: Why We Need Corporate Governance
 
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