Final answer:
Employees are not considered a formal part of the core corporate arrangement under the OBCA, which includes shareholders, directors, and officers. Corporate governance also involves auditing firms and large shareholders. The OBCA defines roles to ensure proper governance and oversight.
Step-by-step explanation:
In the context of the Ontario Business Corporations Act (OBCA), the components of a corporate arrangement include shareholders, directors, and officers. While employees are important to a corporation, they are not considered a formal part of the core corporate arrangement under the OBCA. Shareholders are the owners of the company and elect the board of directors, who provide governance and oversight for top executives. Officers are appointed by the board to manage the day-to-day operations of the company.
Corporate governance institutions under the OBCA also involve the auditing firm hired by the corporation, and outside investors, particularly large shareholders such as those investing through mutual funds or pension funds. The Lehman Brothers case highlighted failures in corporate governance, failing to provide accurate financial information to investors. The OBCA aims to prevent such failures by defining clear roles and responsibilities within a corporation's structure.