Corporate Governance Framework
By: A Staff Writer
Updated on: Jul 19, 2024
What: The system by which companies are directed and controlled, including the board of directors, management, and shareholders.
Who: Evolves over time with laws and best practices. Companies adapt frameworks to their specific needs.
Why: Especially for entrepreneurs seeking funding. Strong governance builds trust, reduces risk for investors, and aligns everyone’s interests.
When: From the start! Even small companies benefit from clear decision-making structures. Sloppy governance can sink you.
How:
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- Get informed on the principles of good governance.
- Have honest discussions with co-founders/investors about roles and expectations.