Constituents of Corporate Governance

The three key constituents of corporate governance are

a.   The Board of Directors: A board of directors is a body of elected or appointed
members who jointly oversee the activities of a company or organization. The
board’s activities are determined by the powers, duties and responsibilities
delegated to it or conferred on it by an authority outside itself. These
matters are typically detailed in the organization’s byelaws. The byelaws
commonly also specify the number of members of the board, how they are to be
chosen, and when they are to meet.

b.   The Shareholders: Any person, company or other institution that owns at least one share in
a company is known as shareholder. A shareholder may also be referred to as
“stockholder”. Shareholders are the owners of a company. They have the
potential to profit if the company does well, but that comes with the potential
to lose if the company does poorly.

 The Management: The term management means “senior management”. It means personnel of the
company who are members of its core management team excluding Board of
Directors. Normally, this would comprise all members of management one level
below the executive directors, including all functional heads.