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This paper puts forward an innovative construct called the Statute of Governance, by which a company can foster and enhance its corporate governance. The paper argues that it is not enough to list some principles of governance and a set of related good practices, as the Australian Stock Exchange has done, albeit it comprises the best available guidelines for the time being. We contend, however, that a step further should be taken, consisting of a Statute of Governance designed and passed by the Board, voted through by stockholders, and enacted by the management. Such statute is a pivotal linkage between principles and good practices, because it becomes enforceable from within the company itself, as the basic by-law concerning corporate governance.

The Statute of Governance: A Pivotal Linkage between Principles of Governance and Corporate Practices