Corporate Governance

A number of times my learners ask what is the corporate governance and why it is important? I then thought of writing about it. Lets start from understanding the word ‘Corporate’ first. Generally Corporate means a company or organisation for making profit as it is all about profit making business. However, the term corporate means a large company or organisation which has a separate legal entity. The key elements of a corporate organisation is that it has limited liability which means that there is no individual held liable in case of any debt in company. In addition, corporate organisations do not have any individual ownership. Shareholders enjoy the ownership of a corporate organisation and participate in profits [...]