Prior to 1997 the research carried out on corporate governance around the world was minimal. However, after the crisis that swept the financial markets and economics of the major Asian countries in 1997, and the notorious collapse of Enron in 2001, the interest in corporate governance has increased. Therefore, corporate governance has attracted considerable attention in the area of academic research and on the agenda of public policy debates in both developed and less-developed countries. An improved corporate governance system is now viewed as an essential feature of companies, and it can serve as an incentive for investment and also strengthen the foundation of long-term economic performance. The principal aim of this study is to investigate and offer an initial understanding of corporate governance practice within a developing economy, the case of Libya. Therefore, studying with different stakeholders is more suitable to understand corporate governance patterns and relations within the Libyan context. The study also investigates how the various environmental factors affect corporate governance practice and inhibit the practice and development of corporate governance. Two main research methods were employed in this study, namely, interviews and questionnaires. Distributing 453 questionnaires to six groups of stakeholders, and ten semistructured interviews with policy-makers were chosen to achieve the objectives. The findings suggest that the corporate governance framework in Libya is less-developed, and Libya has lagged behind its neighbours. Also, the study revealed that the absence of principles of corporate governance has led to the weakness of accountability and responsibility processes