Corporate governance
The rules, bodies and processes through which a company is directed and controlled. Governance defines executive powers, shareholder rights, decision-making mechanisms and internal control systems.
In practice
For an SME, governance starts with up-to-date articles of association, annual meeting minutes properly drafted and regulated agreements duly approved. At group level it adds a structured management committee, monthly financial reporting and documented inter-company agreements. Investors scrutinise governance during due diligence: a founder who holds all decision-making power without counterweight is flagged as a concentration risk.