Abstract
According to The World Bank (2006), ‘good' corporate governance (CG) refers to the structures and processes for the direction and control of companies. This involves the relationships among the management, board of directors, controlling and minority shareholders as well as stakeholders.
The reality shows weak corporate governance has precipitated the financial crisis in 1997 within the Asia Pacific region (Chang 2006, 409) and consequently, many Asia-Pacific economic cooperative economies have realized that development of better corporate governance systems is a key component of the policy and structural re-forms essential for a sustained recovery (Ali 2000). This involves a strategic role of the Asia Pacific governments.
However, there are different perspectives to define ‘good' corporate governance and the appropriate role of the governments, which generates risks of controversy in the analysis.
This paper is divided in three parts.
The first part (1) explores the theoretical disagreements related to ‘good' corporate governance and the appropriate role of the government. The second part (2) pro-poses general recommendations based on a specific perspective.
