Companies and Corporate Governance - An Overview

Analysis

Everyone dealing with a company, whether as shareholder, stakeholder (suppliers, distributors, agents, and so on.) or director wishes it to be well managed, or at the very least managed for their own benefit.

Of these stakeholders, the only group actually in a position to ensure that the company is managed for their own benefit are the directors. In the meantime, the only group who can control the directors and monitor their performance are the shareholders. So, the relationship between the shareholders and directors is of great importance.