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hi there let's take a quick look at what's meant by the concept of corporate governance well corporate governance is all about how businesses and in particular companies private limited or public limited companies are run how they're directed and controlled and it's an important concept particularly for companies because of a concept called the divorce between ownership and control we've looked at this in a separate video what this means is that companies are controlled by the board of directors by the senior management and they may also be shareholders but in many situations particularly larger complex businesses there are many many shareholders who have no involvement in the day-to-day running or control of the business but they are still owners of the business therefore the board of directors have a duty of care a duty to act in the interests of shareholders and this is why the concept of corporate governance is so important and it's why there are various processes in place to try...
