Corporate governance is a framework of rules and regulations that governs the leadership, organization, and management of a company. In addition to compliance with laws, rules, and regulations, corporate governance may include compliance with the company’s corporate charter, bylaws, formal policies, customs, and internal processes. The company’s board of directors often directs its corporate governance over a broad range of functions, including financial reporting and disclosures, securities laws, risk management, operating plans and budgets, strategic planning, succession planning, crises management, internal controls, internal audits, preventing foreign corrupt business practices, and executive compensation.

In South Carolina, corporate governance is primarily guided by the South Carolina Business Corporation Act, which outlines the roles, duties, and responsibilities of corporate directors and officers. These laws ensure that corporations operate with a level of transparency and accountability, particularly in financial reporting and disclosures. Companies must also adhere to federal regulations such as the Sarbanes-Oxley Act for financial practices, the Dodd-Frank Act for financial reforms and consumer protection, and the Foreign Corrupt Practices Act to prevent bribery and corruption in international business dealings. Additionally, corporations in South Carolina must adhere to their own articles of incorporation, bylaws, and any internal policies they have established. These documents and policies often cover areas such as strategic planning, succession planning, risk management, and executive compensation. The board of directors is tasked with overseeing these governance aspects, ensuring that the company complies with both internal and external regulations and standards.