Several national governments have already passed legislation dealing with the various areas of corporate governance. In general, most national governments seem to support governance regulation in response to market crisis or corporate fraud. Corporate governance is a way to regain credibility with the public, particularly with investors. The technical aspects of these laws repeatedly deal with the same issues, reflecting a need to assure investors that corporations are trustworthy.

Basic corporate governance law sets the standards for the d ecision system of a corporation. Laws may dictate how rights and responsibilities are distributed between the general assembly, the board of directors and the management. In many countries, legislation outline the compensation, evaluation, and composition of the Board of Directors, as well as the directors' responsibilities. These governments seem to believe that the Board has a direct effect on the governance standard of the company. If the board is well managed, and the interests of both employees and investors are properly represented, the company will perform efficiently.

The most common legislation under corporate governance addresses accounting practices and financial reporting. The government and public have a right to accurate financial information. Laws mandating full disclosure through quarterly financial reports and defining stricter regulation of auditors ensure that investors receive honest information. In the wake of corporate scandals, such as the collapse of the American energy trader Enron, governments are afraid that low accountability standards could ultimately affect national economies.

The aim of most legislation, as well as many of the codes of best practice, is to protect shareholder rights.  Both laws that ensure shareholder representation on the Board, and those that regulate auditing practices, have been created to safeguard investor interests.  Many governments feel, in addition, that the public will be more likely to invest in corporations if they are assured that companies have good governance standards. In this way, the governments feel that they are helping investors, individual companies, and the economy.

Legislation may be included in current corporate or finance law, mandated by a securities exchange commission, or covered by recent corporate governance regulation.  Many nations have created commissions to examine national governance standards, with the intent of passing or amending legislation in the future.  These laws will allow the government to mandate transparency and disclosure, even if it is at the expense of corporate efficiency and competition.

To consult national and international corporate governance codes and best practices see  Codes and Best practices