What is governance?

There is not one conclusive definition of corporate governance.

Governance Institute, for example, defines it in these terms:

Governance encompasses the system by which an organisation is

controlled and operates, and the mechanisms by which it, and its people, are
held to account. Ethics, risk management, compliance and administration
are all elements of governance.

Other useful definitions of governance are provided below.

Corporate governance involves a set of relationships between a

company’s management, its board, its shareholders and other stakeholders.
Corporate governance also provides the structure through which the
objectives of the company are set, and the means of attaining those
objectives and monitoring performance are determined.
Organisation for Economic Co-operation and Development (OECD)

Corporate governance is ‘the framework of rules, relationships, systems and

processes within and by which authority is exercised and controlled in
corporations. It encompasses the mechanisms by which companies, and
those in control, are held to account.