Corporate governance is the system of rules, practices and processes by which a company is directed and controlled. In UK law limited companies are a separate legal entity and as such must have their own systems to manage the interaction between the interested parties. These systems set out how the board of directors manages the interaction between each other, shareholders, management and the operations of the company. Directors are elected by shareholders or appointed by other board members and they represent the shareholders, the ultimate owners of the company in managing the company. Directors have a legal requirement to act in the interests of the company but often represent differing shareholder groups and this is one of the many conflicts of interest that have to be managed by the board. The company documents, the Articles and Subscription Agreement, provide a written set of rules to which all of the interested parties subscribe and should be well understood by all parties.