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Corporate governance refers to how businesses, particularly private and public limited companies, are directed and controlled. It is crucial due to the "divorce between ownership and control," where shareholders, especially in larger companies, may own the business but are not involved in its daily management. Instead, the board of directors and senior management handle operations. This separation creates a responsibility for the board to act in the best interests of shareholders. Consequently, various processes and frameworks are established to ensure proper corporate governance, emphasizing the board's duty of care towards the interests of the shareholders.