Final answer:
Corporate governance is the oversight of top management by a Board of Directors and other institutions like auditing firms and investors, ensuring company integrity and alignment with stakeholders' interests.
Step-by-step explanation:
Corporate governance refers to the system of rules, practices, and processes by which a company is directed and controlled. The Board of Directors, which is elected by shareholders, is a crucial component of this structure, acting as a supervisory body over top management to ensure that the company's operations align with the best interests of shareholders and other stakeholders. Other key institutions involved in corporate governance include auditing firms and outside investors such as mutual funds or pension funds. Effective corporate governance is designed to prevent issues like those that occurred in the case of Lehman Brothers, where governance structures failed and led to misinformation about the company's financial status.
Corporate governance is the oversight of top management by a board of trustees. It is a system in which the board of directors, elected by the shareholders, provides governance and oversight for the executives of a company. The board ensures that the company is being managed in the best interests of the shareholders and follows ethical and legal guidelines.