Stability of the financial system depends on its ability to respond to the demands of the time in which it has to exercise its functions. If these functions are not fully implemented in the laws and regulations governing the financial system of a country, it is understandable that there is a need to align the legislation and system with the current needs and requirements of the financial markets. In everyday life changes are becoming increasingly normal and commonplace. The need for change has become one of the biggest challenges facing the modern strategic management of the company. Looking at the macro level, due to varying success in coping with the coming changes, a relative position of individual countries is changing, as well as their industrial base, wealth, and power. In our circumstances, where the companies are in the process of transition, various transformation processes are gaining importance given that in many companies, in the past, the very scope and structure of businesses were jeopardized and that the quality of their performance has been below a minimally acceptable level over a longer period of time. Therefore, it is clear that if they are to successfully cope with the competition, they must first empower themselves to meet modern standards of business. The contemporary review of corporate governance cannot be undertaken without the consideration of important events and relationships that the practice of developed countries has crystallized, such as the rule of law, institutional development, contractual relationships within corporation, protection of property rights, managerial discretion, and the agency problem. The study of corporate governance requires a multidisciplinary approach, involving finance, social sciences, political science and strategic management. Corporate governance system refers to the entirety of laws, effective institutions, professional chambers and business ethics. In emerging markets many of these links are absent, which makes the establishment of a stable corporate governance system even more difficult due to the weaknesses of public governance. Effective corporate governance is based on the accountability of corporate management which should act in the best interest of shareholders and other stakeholders interested in the success of corporations. It basically derives from elementary rules of property rights protection and is a prerequisite for the integrity of market institutions.