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welcome to this video now lets take a quick look at what the concept of corporate governance means the relevance of this concept and what perspectives are used to define this concept so without further ado lets get into it well simply put corporate governance refers to how companies are directed and controlled companies in this context commonly refer to private limited liability and public limited liability companies the concept of corporate governance is important due to the common feature of these types of companies which is the separation of ownership and control let us explain what this means limited liability companies are owned by people who have invested a certain amount into the company in form of shares for expected returns known as dividends legally these owners investors or shareholders are also responsible for the losses incurred by the company to the extent of their investment hence the term limited liability although limited liability companies are owned by investors o