In recent terms high quantities of domestic and international capital is being availed by business. A prime benefit of Corporate Governance is the improvement in the prospects for attracting long-term capital. The concept of Corporate Governance gained further momentum after the sudden crash of Enron, WorldCom, Xerox, Lehman brothers and the crisis of Satyam one of the biggest frauds in India’s corporate history. In today’s world of globalization the concept of Corporate Governance had taken an important place. Successful attempts are being made now to ensure that companies adopt good Corporate Governance practices all over the world by forming and implementing Corporate Governance standards. Good Corporate Governance will also help to survive in an increasingly competitive environment through mergers, acquisitions, partnerships and risk reduction through assets diversification. Also adopting good Corporate Governance practices leads to a better system of internal control this leading greater accountability and better profit margins. Corporate governance (hereafter, CG) is the set of processes that provides an assurance to the investors of a fair return on their investment. CG is concerned with the relationships among the management, board of directors, controlling shareholders, minority shareholders, and other stakeholders. This paper presents the concept of Corporate Governance and reveals that how does Corporate Governance important for any company to run smoothly.