7.1 Corporate Governance and Securities Governance

The two governance faces (the exam's frame):corporate governance — the company's internal direction-and-control system (the board-management-shareholders' architecture — Company Law's world, LAW5404, this semester) and securities governance — the market-facing accountability (the disclosure, the listing's disciplines, the market's verdict). The two faces' marriage: the market's price depends on the company's governance's honesty; the governance's discipline depends on the market's signals — the listed company lives in both houses (the Cadbury definition's echo: governance as the direction-and-control system — name only).