https://boardroomdirect.blog/what-are-the-four-types-of-corporate-governance/

The term corporate governance encompasses the structures, customs, policies and procedures that determine the way people manage, direct and control a business. Typically, this means setting a vision for the future of an organization, creating and documenting processes to help to achieve it, and regularly reviewing the performance of the business and assessing the needs of all stakeholders. Good corporate governance is based on the principles of transparency, accountability, diversity and fairness.

This requires that a business provides all pertinent information, including financial results as well as meeting minutes and the outcomes as well as changes to the normal operation and resignations and replacements of members of the board and managers. This fosters honesty, trust and an openness to be open to sharing both good and bad news with staff, shareholders, vendors, the community and other stakeholders.

The primary function of a company’s board is to implement an established system of checks and balances to ensure shareholders are treated fairly and that decisions made by management are sound. This involves ensuring that internal controls are in place to ensure compliance with laws and regulations.

In the world, a variety of models of corporate governance exist. The most well-known is the Anglo-American model that prioritizes the interests of shareholders in the management and decision-making process. This model is widely used by companies in a variety countries but there are other governance models available. They are all similar and share a few fundamental principles even though they differ.