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

Corporate governance is the term used to define the procedures, structures policies, customs, and procedures that determine how employees manage, direct, and supervise an organization. Typically, this entails setting a long-term vision for the company, establishing and documenting processes that enable it, evaluating regularly the performance of the business and assessing the needs of all stakeholders. Corporate governance should be based on the principles of transparency and accountability.

It is required that organizations be transparent about all pertinent information such as financial results, meeting outcomes, minutes, changes to normal operations including resignations and replacements of key board members and management. This promotes honesty, integrity and willingness to be open to sharing both good and bad information with staff, shareholders and vendors, as well as the community and other stakeholders.

In general, the board’s task is to create the system of checks and balances to ensure that shareholders are treated fairly, and management decisions are sound. This involves making sure that internal controls are efficient to ensure compliance with the laws and regulations.

Different models of corporate governance are used all over the world. The most common is the Anglo-American model that places the interests of shareholders first in the decision-making process and management. This model is widely utilized by companies in many countries, but other governance models exist. They are all similar and share a few fundamental principles however they differ.