Corporate governance is the governing bodies and the governing laws regarding corporations.  This is what gives the corporation stability and solicitude to be a separate entity and a successful business.  These governances are designed with the intention of creating a successful business and providing the appropriate stakeholders with the appropriate payments.  

There are governing bodies within the corporation that help to decide the direction of the corporation and the different laws and rules that are needed within the corporation.  These governing bodies tend to include shareholders, management, and presidents of the company.  These people are directly responsible for the choices made within the company.  These people should work for the best interest of the business and the shareholders.  

There are government laws regarding the corporations as well.  These laws indicate that a corporation is legally a separate identify from those who run the business.  This means that person cannot use the corporation to pull him or herself out of debt or to repay a bankruptcy.  This also means that if the corporation bankrupts, the shareholders and other stakeholders do not need to worry about their personal belongings and assets being used to cover the corporationТs debt.  

It is very important to keep a close eye on the governing of a corporation.  These governances are done to ensure the safety and security of those who invest in the business in one form or another.  There are governances regarding the employees of the corporation, the managers and the shareholders.  These governances have become stricter since the 2001 fall of Enron and other companies due to actions within the company.  These governances have been redesigned to hopefully prevent those failures from happening again.