It is the separation of powers between ownership, governance and management and it has a clear separation of powers, ie. Ownership – shareholders, governance – Board of Directors, management – CEO and team of officers, a system of checks and balances and fairness, accountability and transparency.
Economic convergence: a policy of open and free economic systems must be complemented by competitive and modern systems in bank and corporate level.
Competition for Capital: institutional investors put a premium on good corporate governance systems and practices.
Increased shareholder activism: shareholders, potential investors and other stakeholders demand more ways of ensuring that their interests will be taken care of.