"The central element in corporate governance is the challenges arising out of separation of ownership and control. The shareholders are the true owners of a corporate and the governance function controls the operations o

There are many features that are important considerations in the continuing evolution of corporate governance best practices. CalPERS which is the largest U.S. public pension fund has provided Core Principles which should be adopted by companies and markets in order to establish the foundation for achieving long-term sustainable investment returns through accountable corporate governance structures. These core principles of accountable corporate governance are- Sustainability: Companies and external managers are expected to optimize operating performance, profitability and investment returns in a risk-aware manner and with a responsible conduct. Director Accountability: Directors should be accountable to shareowners, and management accountable to directors. Transparency: Operating, financial, and governance information about the companies must be readily transparent to permit accurate market comparisons. One-share/One-vote: All investors must be treated equitably and upon the principle of one-share/one vote. Proxy Materials: Proxy materials should be written in a manner designed to provide shareowners with the information necessary to make informed voting decisions. Code of Best Practices: Code of Best Practices should be followed to promote transparency of information, prevention of harmful labor practices, investor protection, and corporate social responsibility. Long-term Vision: Corporate directors and management should have a long-term strategic vision that, at its core, emphasizes sustained shareowner value and effective management of both risk and opportunities in the oversight of financial, physical, and human capital. Access to Director Nominations: Shareowners should have effective access to the director nomination process. Political Stability: Progress toward the development of basic democratic institutions and principles, including such things as: a strong and impartial legal system; and, respect and enforcement of property and shareowner rights.