Fraudulent actionsWhat is corporate governance?Corporate governance refers to the set of systems, principles and processes by which a company is governed. They provide guidelines for how the business can be directed or controlled so that it can achieve its goals and objectives in a way that adds to the value of the business and is also beneficial to all stakeholders. long-term stakeholders. This definition seemed more appealing because it gave a broader understanding than the other definitions proposed. It explains in simple terms what exactly corporate governance is and who it involves. Other definitions were vague and did not mention some of the participants involved. Corporate governance is a process and a system and, like any system, it has many elements. Internal and external actors can play a role in governance. Some examples of internal actors are directors, the general secretary, sub-departments, also known as “middle” management, and employee representatives, otherwise known as unions. The chosen theme is that of fraudulent actions. Fraudulent action may be characterized by, involving or arising from fraud, such as actions, undertakings, methods or gains, for example, a fraudulent scheme to evade tax. Fraudulent practice means any action or omission, including any misrepresentation, that knowingly or recklessly misleads, or attempts to mislead, a party in order to obtain a financial advantage or evade an obligation. Sometimes the law holds people such as officers, directors, and those who contribute to the fraud liable, even if they did not know about the fraud. The Companies Act, also known as the Principal Act of 1963, introduced the idea of ​​fraudulent transactions under section 297 which takes care of the rest...... middle of paper... ...he quote from Wearing (2005), it is true that there will never be a perfect system of corporate governance. There is a need to strike a balance between regulations. If there are too few, it leads to corporate governance abuses and if there are too many, it will hinder wealth creation. It is put in place to manage the balance of power within a company, nothing is 100% and the failure of a system is expected, but if the majority of the time, corporate governance succeeds so maybe there should be a few more warning signs. as if detected early, action can be taken quickly and a resolution can be found. Throughout the essay findings, corporate governance and fraudulent actions are relevant to each other and corporate governance can be used to help deal with any fraudulent actions, so that they work well together, which is important for any business..