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Corporate governance broadly refers to the mechanisms, processes and relations by which corporations are controlled and directed.<ref>Shailer, Greg. An Introduction to Corporate Governance in Australia, Pearson Education Australia, Sydney, 2004</ref> Governance structures and principles identify the distribution of rights and responsibilities among different participants in the corporation (such as the board of directors, managers, shareholders, creditors, auditors, regulators, and other stakeholders) and includes the rules and procedures for making decisions in corporate affairs.<ref>The Corporate Governance of Iconic Executives, 87 Notre Dame Law Review 351 (2011), available at:http://ssrn.com/abstract=2040922</ref> Corporate governance includes the processes through which corporations' objectives are set and pursued in the context of the social, regulatory and market environment. Governance mechanisms include monitoring the actions, policies, practices, and decisions of corporations, their agents, and affected stakeholders. Corporate governance practices are affected by attempts to align the interests of stakeholders.<ref name="oecd.org">{{#invoke:citation/CS1|citation |CitationClass=web }}</ref><ref>Tricker, Adrian, Essentials for Board Directors: An A–Z Guide, Bloomberg Press, New York, 2009, ISBN 978-1-57660-354-3</ref> Interest in the corporate governance practices of modern corporations, particularly in relation to accountability, increased following the high-profile collapses of a number of large corporations during 2001–2002, most of which involved accounting fraud; and then again after the recent financial crisis in 2008. Corporate scandals of various forms have maintained public and political interest in the regulation of corporate governance. In the U.S., these include Enron and MCI Inc. (formerly WorldCom). Their demise is associated with the U.S. federal government passing the Sarbanes-Oxley Act in 2002, intending to restore public confidence in corporate governance. Comparable failures in Australia (HIH, One.Tel) are associated with the eventual passage of the CLERP 9 reforms.<ref>Lee, Janet & Shailer, Greg. The Effect of Board-Related Reforms on Investors Confidence. Australian Accounting Review, 18(45) 2008: 123-134.</ref> Similar corporate failures in other countries stimulated increased regulatory interest (e.g., Parmalat in Italy).


Corporate governance sections
Intro  Stakeholder interests  Other definitions  Principles  Models   Regulation   Codes and guidelines  History  Stakeholders  Mechanisms and controls  Systemic problems  Issues  See also  References   Further reading   External links  

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