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In general terms, the principals of a corporation are the owners or investors, referred to as shareholders or stockholders. The agents of the corporation are generally considered to be the board of directors, officers or other persons the corporation authorizes to act on its behalf.
Definition. The framework of rules and practices by which a board of directors ensures accountability, fairness, and transparency in a company's relationship with its all stakeholders (financiers, customers, management, employees, government, and the community).orporate governance broadly refers to the mechanisms, relations, and processes by which a corperation is controlled and is directed; involves balancing the many interests of the stakeholders of a corporation. 6 people found this helpful.