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Chapter 34

Corporate Governance

A.N. Licht

Radzyner School of Law, Interdisciplinary Center Herzliya, Herzliya, Israel

Outline

Basic Concepts

What is Corporate Governance?

The Agency Problem and Opportunism

A Strategic Approach

The Nature of the Corporation

Corporate Governance as a System

A Social Institution

Comparative Corporate Governance

Measuring Corporate Governance

Internal Institutions

The General Meeting

External Institutions

Formal Legal Institutions

Informal Institutions

Basic Concepts

What is Corporate Governance?

Corporate governance is the institutional framework that regulates the division and exercise of power in the corporation. ‘Power’ thus is the key concept in corporate governance. This definition ...

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