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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.
More specifically it is the framework by which the various stakeholder interests are balanced, or, as the IFC states, the relationships among the management, Board of Directors, controlling shareholders, minority shareholders and other stakeholders. The OECD Principles of Corporate Governance states:orporate governance also provides the structure through which the objectives of the company are set, and the means of attaining those objectives and monitoring performance are determined..