Final answer:
The primary mode of corporate governance is established by the Corporate Charter and Corporate Bylaws, which detail the structure and governance rules of a corporation. The BODs, elected by shareholders, are the main body overseeing corporate management, supported by auditing firms and large shareholders.
Step-by-step explanation:
The legal provisions that establish the Board of Directors (BODs) as the primary mode of corporate governance are typically found in the Corporate Charter and Corporate Bylaws. The Corporate Charter, also known as the Articles of Incorporation, sets forth the initial structure and purpose of a corporation, while the Corporate Bylaws provide detailed rules for the governance of the corporation, including the duties and powers of the board.
Effective corporate governance is essential for maintaining investor trust. Beyond the BODs, other institutions such as auditing firms and outside investors play significant roles in corporate governance, ensuring that the financial records are accurate and that the investors are well-informed about a company's performance.