International Journal of Research in Social Sciences Vol. 9 Issue 8, August 2019, ISSN: 2249-2496 Impact Factor: 7.081 Journal Homepage: http://www.ijmra.us, Email: editorijmie@gmail.com Double-Blind Peer Reviewed Refereed Open Access International Journal - Included in the International Serial Directories Indexed & Listed at: Ulrich's Periodicals Directory ©, U.S.A., Open J-Gage as well as in Cabell’s Directories of Publishing Opportunities, U.S.A 466 International Journal of Research in Social Sciences http://www.ijmra.us, Email: editorijmie@gmail.com A STUDY ON THE PRINCIPLES OF CORPORATE GOVERNANCE WITH SPECIAL TO REFERENCE TO THE CODE OF BEST PRACTICES ISSUED BY SEC GHANA Dr. Edward Asumadu  Abstract In 2010, Ghana, a member State of 16 countries in the west coast of Africa, in recognition of the significant role of good corporate governance, formulated an encyclopedic guidelines for effective corporate governance practices in the country. The guidelines were promulgated by the Securities and Exchange Commission (SEC) of Ghana in order to secure greater transparency and to promote best practices in corporate governance. This study aims at providing insight into the five broad areas in regards to the SEC governance principles namely, rights of shareholders, equitable treatment of shareholders, the role of stakeholders, disclosure & transparency, and the responsibilities of the board. The paper also attempts to find out the extent to which Ghanaian banking corporates are responding to the SEC code of best corporate practices. The study used quantitative research methodology relying on secondary data and survey responses from 20 sampled banks including those unlisted and listed at the Ghana Stock Exchange. Using regression and correlation analysis, the results of the study showed a healthy relationship between the corporate governance variables and the SEC governance guidelines and that good governance is an imperative element in explaining the performance of commercial banks in Ghana. Keywords: Board directors, Best practice, Corporate governance, Shareholder rights, Stakeholder involvement. 1.0 Introduction A corporation once created by a group of individuals known as shareholders and incorporated, it is regarded as an artificial or intangible human being in the eyes of the law. A corporate body, like a person can buy, sell or enter into a contract and sue other persons and be sued as well. The shareholders possess a substantial stake as bonafide owners yet, they may be diffused across the country or outside the country so more often than not it becomes undesirable or highly impracticable for them to oversee to the day-to-day running of their company. Besides, the bonafide owners may not have all the requisite skills, inter alia to manage the affairs of the company in that they appoint certain individuals known as board of directors to run the company on their behalf. The board of directors are given the  Research Fellow, Joseph School of Business Studies (Finance Department) Sam Higginbottom University of Agriculture, Technology & Sciences (SHUATS) Allahabad (Prayagraj), Uttar Pradesh, India