 Dear students, we see that in any contemporary society, corporate form of organizations are getting bigger day by day. They are so bigger that over the period of time, these carpeitians have transformed themselves from a smaller multinational company into a larger transnational corporation. A corporate form of business organization is effective and efficient means to get capital, to obtain the required resources and to produce goods and services for the final market. In many countries of the world, these carpeitians are much dominant in their area of businesses. An important feature of these carpeitians is that the ownership structure is diffused. This means that in a corporate form of organization, the ownership of the business is shared by larger number of shareholders. These individual shareholders proportionally hold a smaller stake relevant to the total capital. Another important feature of these organizations is that the individual shareholders are located at a distant place from each other. And due to this distant location, these shareholders cannot play their role in controlling the affairs of the firm. As a result, these shareholders appoint professional managers. Those managers are given the authority to deploy the business assets and to conduct business for the interests of the shareholders. Now we see that in a corporate form of an organization, the ownership is separated from the management of the firm. This separation of ownership from control of the firm creates an agency relationship between the shareholder and the managers. The managers are generally known as agents in this relationship and shareholders are known as the principal of these agents. Now sometimes this agency relationship may not work well for the organization and it does not affect only the shareholders, but it also affects the other stakeholders like creditors, like general public, like investors, like government regulatory authorities, customers or many others. Now this creates a conflict of interest among all these stakeholders and now the question arises how to control this conflict of interest. There is one solution with the help of which this conflict of interest can be controlled and that solution is the development, implementation and establishment of a strong corporate governance structure in the modern organization. Now what's corporate governance is? Corporate governance is composed of principles, procedures, policies and clearly defined authorities, responsibilities and accountabilities, all these used by the shareholders and other stock stakeholders to overcome the conflict of interest in the firm. This corporate governance mechanism is used in such a way that it ensures the minimization of conflict of interest. But what happens if a company fails to structure its corporate governance system effectively? A loss may be due to the operational risk to the company, company may not be able to perform as per the set procedures, rules and regulations in the company. Due to this there the investor may lose trust in the company's operations and its policies. There may be a risk of to the company's existence due to continuous failure. The existence of the company may come to an end. Now how much riskiness is the investment in a particular company? Is subject to the quality of the corporate governance system prevailed in that company? It is very much important to monitor continuously the corporate governance practices in any company because we see that a change in management, change in board of directors may change the competitiveness and market conditions for the company. So in order to ensure the effective governance, the continuous governance mechanism is much more important. Now how much effective and efficient functioning of a company can be? It depends that how much strong corporate governance structure is in the company. Inefficient corporate governance system in any company may lead to the corporate failure. And in the failed organizations there is a loss of investor's money. Again, there is a trust loss on inefficient functioning of global and local financial systems. In order to avoid these losses, it is needed that continuous monitoring of the company's practices in terms of its corporate governance and how much it is effective to sustain the corporate governance system. It is required. What is the role of regulators in implementing and ensuring consistent corporate governance system? Introduction of new regulatory frameworks to restore the faith of the investors in any companies and financial markets is much desirable. It prevents future corporate collapses. It ensures and strengthens the corporate governance culture in any organization. And corporate governance regulation requires to be updated regularly. It requires to address all the corporate governance problems. It requires to be uniform for all set of organizations in a particular industry, in a particular culture, but uniform as a whole for the company's corporate sector.