Corporate Governance

Corporate governance may be said to refer to the set of processes, customs, policies, laws and rules that affecting the way a corporation is directed, administered or controlled. It also includes the relationships between many persons who have a stake in the company and the goals which the corporation is governed.

In Malaysia, the High Level Finance Committee Report on Corporate Governance defined corporate governance as 'the set of processes and structure used to direct and manage the business of the company towards enhancing the business prosperity and corporate accountability with the ultimate objective of realizing long-term shareholders value, whilst taking in accounting the interest of other stakeholders.'.

In essence, corporate governance is a set of principles and best practices, which a company should follow to achieve the purposes indicated in the High Level Finance Committee Report on Corporate Governance.