What is Corporate Governance?
Corporate Governance refers to the framework that defines the management and oversight of a company, balancing the interests of its stakeholders, including shareholders, management, customers, and regulators. It encompasses the rules, practices, and processes that guide how decisions are made, how risks are managed, and how performance is monitored.
Under the Corporate Transparency Act (CTA), corporate governance takes on added significance as companies are required to disclose their Beneficial Ownership Information (BOI). This helps ensure that decision-makers and those who control the company are identified and held accountable. The CTA mandates transparency in corporate governance structures to prevent financial crimes such as money laundering and to ensure compliance with regulatory standards.
Good corporate governance promotes transparency, ethical business conduct, and legal compliance, which is essential in safeguarding the integrity of the financial system.
