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Corporate governance refers to the way in which businesses, particularly private and public companies, are directed and controlled. It is crucial due to the "divorce between ownership and control," where shareholders may own a company but are not involved in its daily management. Instead, the board of directors and senior management handle the company's operations. These directors have a duty of care to act in the interests of shareholders, making corporate governance vital. Various processes are implemented to ensure that directors fulfill this responsibility and maintain accountability to the owners of the business.