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this is a lecture from open tuition to benefit from the lecture you should download the free lecture notes from open tuition com corporate governance corporate governance relates to how companies are directed and controlled now this the essence of the problem arises because there is in any company which gets really much beyond the family company certainly any company which is likely to be quoted on any sort of Stock Exchange the people who own the company the shareholders do not take any day-to-day management responsibility for the running of the company the running of the company is something which is the responsibility of the directors so at this separation of ownership the shareholders have control the directors and this gives rise to what's called an agency problem of stewardship an agency is where one party the principle essentially delegates power and responsibility to another party the agents so a travel agent for example you're the person who wants to travel you go through an...
