The purpose of this essay is to examine the level of involvement needed by directors, management and major shareholders in establishing and continuously encouraging effective
corporate governance practices. Further, the role for legislation and
regulation in supplementing and strengthening such practices is also discussed. The paper makes reference to corporate disasters experienced by
corporations such as Enron, HIH Insurance, WorldCom, AMP, Harris Scarfe and One.Tel, which have all drawn great attention to the issue of corporate governance and how corporations are controlled, managed and regulated.