ABSTRACT
The notion of good corporate governance dominates much of the world's professional and academic literature, largely as a result of various high-profile corporate scandals and failures. In contrast, the principal–agent theory of corporate governance places good governance in the context of the relationship between management and shareholders, and tends to limit accountability of management and the board of directors to the company as a whole and shareholders as a collective. The CEO of the Uganda Securities Exchange stressed that interaction between the directors, managers and shareholders of a company had to take place according to the law of the country concerned and must ensure that: no laws are violated; all shareholders are protected; and issues of corporate social responsibility are addressed. J. D Stewart suggests that five levels of accountability exist: Accountability for probity and legality, Process accountability, Performance accountability, Programme accountability, and Policy accountability. Economic factors such as the level of remuneration, poverty, inflation were seen as affecting accountability.
