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Corporate governance refers to how companies, whether private or public, are directed and controlled. It is crucial due to the "divorce between ownership and control," where shareholders may own a business but not be involved in its daily management. Instead, this responsibility falls to the board of directors and senior management. The board has a duty of care to act in the best interests of shareholders, which underscores the significance of corporate governance. Consequently, various processes are implemented to ensure effective governance and accountability within companies.
