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Section Corporate Law

The Legal Framework of Corporate Governance in Joint-Stock Companies

Vol. 21 No. 1 (2026): February:

Hatem Faaeq Mahdi (1)

(1) Samarra University/Faculty of Law, Department of Law,, Iraq
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Abstract:

General Background: Corporate governance emerged as a response to recurring financial and managerial crises affecting companies and capital markets worldwide. Specific Background: In joint-stock companies, governance functions as a legal and economic framework regulating relationships among shareholders, boards, management, and stakeholders to ensure transparency and accountability. Knowledge Gap: Despite its growing relevance, the legal and economic dimensions of corporate governance remain insufficiently integrated in existing analyses. Aims: This study examines the legal framework and economic significance of corporate governance in joint-stock companies. Results: Governance enhances stability, investor confidence, and institutional performance. Novelty: The study synthesizes legal and economic perspectives within a unified framework. Implications: Findings support governance adoption to strengthen corporate sustainability and market confidence.
Keywords : Corporate Governance, Joint-Stock Companies, Shareholder Rights, Financial Transparency, Economic Development
Highlight :












  • Governance rules enhance transparency, fairness, and protection of shareholder rights, supporting institutional stability and continuity.




  • Weak oversight and accounting practices cause crises, while governance mechanisms reduce corruption and mismanagement risks.




  • Effective implementation strengthens investor confidence, market value, and economic growth across developing and emerging economies.












 

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