Corporation Governance is an important notion in overseas business which cannot be dismissed. It relates to the procedures, procedures adopted by a company in order to make certain its long-term viability and growth within a global market. Corporation governance is the group of rules, mechanisms and policies followed by different parties to operate and to manage a firm. Principles and governing rules identify the distribution of power and duties among different functions at the plank level.

An effective and successful Corporation has strong corporate governance mainly because it ensures the interest of all stakeholders (shareholders and employees) who have and operate the company. Corporate governance enforces liability of control by setting performance requirements, providing assets, feedback and information on progress to the company directors and other stakeholders. The ultimate objective of corporate governance is always to assure that all interests of the stakeholders are secured and the overall goals on the business will be achieved. A number of the major areas that require interest in the area of corporate governance will be:

Managing risk is a necessary component to operating a prosperous business and this is best achieved through business governance. The ultimate objective of risk management should be to minimize the potential losses encountered by a corporation through their investments. Once properly maintained, a company may effectively decrease its contact with risk by simply diversifying the portfolio my spouse and i. e. purchasing assets and businesses that contain low risks associated with CORPORATE GOVERNANCE them. Appropriate risk management can be achieved by handling the issues that affect the financing of the business such as capital, working capital, market risk and inflation. Because so many of these areas are very delicate and diverse and have a direct impact on the future success with the business, these should be very well addressed and well perceived by every one of the stakeholders.