2 nd International Conference for Accounting Researchers and Educators 2016 14 CRITICAL LEADERSHIP QUALITIES FOR GOOD CORPORATE GOVERNANCE U.L.T.P.Gunasekare Faculty of Commerce and Management Studies, University of Kelaniya. Sri Lanka. thamarag@kln.ac.lk ORCID 0000-0003-4178-6858 ABSTRACT. Corporate governance is a process that aims to allocate corporate resources in a manner that maximizes value for all stakeholders – shareholders, investors, employees, customers, suppliers, environment and the community at large and holds those at the helms to account by evaluating their decisions on transparency, inclusivity, equity and responsibility. Corporate Leadership need to be attentive in effecting good corporate governance and for this purpose they should possess specific leadership characteristics. The goal of this paper is to analyze the concept of good governance and the concept of leadership to propose specific leadership characteristics to strengthen good corporate governance. This study is significant in recruiting corporate leaders, training and motivating them for the betterment of the good corporate governance in the business world today. Scientific literature analysis was the main methodology employed in this regard and it is indicated that competence, accountability, integrity, relationships, values and steadiness are essential leadership qualities in effecting good corporate governance. Key words: Corporate Governance, Leadership qualities, Corporate Leadership, Competence, Accountability, Integrity, Relationships, Values, Steadiness 1. INTRODUCTION. Good corporate governance is important for the sound development of corporates in a country. Leadership is another major factor in effecting good corporate governance. Thus corporate governance and leadership are two interrelated concepts, essential to sustain effective management at all levels in a corporate, in achieving its goals. The increasing complexities and requirements arising from the constant change in society, coupled with the constant push for higher levels of productivity, require corporate governance with effective leadership (Johnston, 2012). Governance was created out from the word “govern” which means to rule a country to control or direct a public affair of a city or to manage a corporate or an organization of any type (Nkechi & Ikechukwu, 2014). Moreover corporate governance refers to the process that aims to allocate corporate resources in a manner that maximizes value for all stakeholders – shareholders, investors, employees, customers, suppliers, environment and the community at large and holds those at the helms to account by evaluating their decisions on transparency, inclusivity, equity and responsibility (Raut, 2001).