Background

Corporate governance frameworks regulate a set of relationships between a company’s management, its board, its shareholders and other stakeholders and provide not only the structure through which the objectives of the company are established and attained, but also the standards against which performance can be monitored. Good corporate governance should provide incentives for the board and management to pursue objectives that are in the interests of the company and its shareholders, as well as fostering the confidence necessary for promoting business investment and development. Much has been done at the international level to develop widely adopted principles of corporate governance that include the obligations of those persons responsible for making decisions concerning the management of an enterprise (in this part referred to as “directors”) when it is solvent.

Related Subject(s): International Law and Justice