This is one prospect that keeps developing day by day and it contains a huge bunch of regulations. Corporate Law is bound by five major characteristics which include the legal personality of an entity, limited liability, transfer of shares, delegated management under a board structure, and investor ownership. Corporate Law governs businesses and companies to ensure that there is a legally-guided approach towards the fulfilled achievement of the above-mentioned five characteristics. A company needs to have a proper method of internal control in order to safeguard the shareholders and other stakeholders of the company. Apart from the directors of the Company, only proper regulations can guide the companies in this aspect. There are various statutes that control the mechanism of corporate governance in Afghanistan.