The framework of board, shareholder, and management roles and processes — the structure that protects the company and its owners.
How to apply corporate governance
- Define board and shareholder agreements clearly
- Document decisions and authorities
- Run annual governance reviews
The #1 mistake to avoid
Running the company on informal arrangements.
The metric that matters
Frequently asked questions
What is corporate governance?
The framework of board, shareholder, and management roles and processes — the structure that protects the company and its owners.
Why does corporate governance matter for my business?
Because it directly affects how well your business performs — get it wrong and it costs you in measurable ways. Done right, it becomes a competitive advantage.
How do I apply corporate governance?
Start with the practical steps: Define board and shareholder agreements clearly; Document decisions and authorities; Run annual governance reviews. The key is to start small, measure, and expand what works.
What is the most common mistake with corporate governance?
Running the company on informal arrangements.
IDAP Legal Division
This glossary entry is maintained by the IDAP Legal division — specialists who deliver this capability on demand to businesses worldwide.