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In Chapter 2 of Corporate Governance, Professor Nugent discusses the role of boards of directors in overseeing company operations and their impact on corporate governance. The tutorial covers the Sarbanes-Oxley Act and its influence on boards and corporations, as well as trends in corporate governance. Nugent explains the concept of a corporation as an artificial legal entity aimed at generating profit for owners, shareholders, employees, and customers. He emphasizes the need for higher-level supervision of management, which is achieved through the Board of Directors, who act as representatives for stockholders who cannot directly monitor the company's internal workings.