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Corporate Governance

Corporate governance refers to a set of processes, customs, policies, and laws by which a corporation is directed, administered or controlled. It is a generic term which describes the ways in which rights and responsibilities are shared between the various corporate participants, especially the management and the shareholders. It is based upon the principles of responsibility, transparency and accountability. An important object of corporate governance is to ensure the accountability of certain individuals in an organization through mechanisms that try to reduce or eliminate the principal-agent problems. It is a tool for socio-economic development. It is also known as corporation governance.

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