Every corporation must be govern a certain way by law.  Since corporations are incorporated at the state level, states have defined what the requirements are for governing corporations.  When a corporation goes public (trades on a stock market) federal government rules on governance comes into play. In short corporate governance address the rules, practices and processes that an organization will use to direct and manage it's day-to-day operations.  Corporate governance defines the following; -  The duties and responsibilities of the board -  What duties lies with the board and executives of the company -  Who makes certain decisions about the direction of growth of the company -  Who can be stock holders in the company -  where the company banks -  Which accountant the company will use -  How key executives are hired -  etc. Corporate governance requires the organization to obtain a corporate kit and establish bylaws and conduct board meetings.  Use the menu below to learn more about these items.