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Corporate governance refers to the way companies, both private and public, are directed and controlled. It is crucial due to the "divorce between ownership and control," where shareholders may not be involved in daily operations. In many larger businesses, ownership is spread among numerous shareholders, while the board of directors and senior management handle control. This creates a need for the board to fulfill their duty of care and act in the shareholders' interests. Consequently, corporate governance involves various processes to ensure accountability and responsible management within companies.
