Abstract
Some weakness in corporate governance in 1980 in America and England, make it urgent to reform corporate governance in order to guarantee stakeholders for good business competition. Good governance is a guideline for companies to actualizes goals and governance. Application of good governance still not fully done by many company because this principle was not binding as a legal rules. This principle applied only as non-explicitly guideline by companies. This situation discourage good governance in practice. Legal construction is important to legitimate good corporate governance as a rule that should be obeyed by companies organs. Companies obligated to manifest principle of good corporate governance as legitimate rules.
