Governance is the work of the Board of Directors/governing body. Governance involves strategy formulation, policy making, supervision of the management team and accountability to shareholders and others. The shareholders, investors fund the organisation, the governing body; the Board of directors are charged with the duty of governing the organisation to best utilise the investments made.

It is understood that a duly incorporated company possesses a legal personality i.e. is seen as a person distinct from its founders. It has the rights of a physical person and can buy, sell, sue or be sued. It then becomes a valid question, how does a company which is an abstraction perform all of these functions? Through its officers e.g. Board of Directors, Employees, Contractors etc.