Canadian law strengthens corporate governance to protect investors and boost market confidence.
Corporate governance in Canada aims to ensure companies are accountable and fair in their dealings. The study reviews Canadian laws and practices related to corporate governance, focusing on internal and external mechanisms. The main goal is to make sure company executives manage finances effectively and act in the best interest of stakeholders. Canada passed a law in 2003, inspired by the U.S. Sarbanes-Oxley Act, to strengthen corporate governance and protect investors. Internal mechanisms come from the board of directors, while external mechanisms include laws, capital markets, and investor activities. Balancing and effective corporate governance can lead to better financial performance.