The contributions in this section concentrate on examining the failure of the internal governance system in the financial crisis and exploring how we may address the problems with the role of institutional shareholders, board effectiveness, internal control and risk management. Robert A. G. Monks starts the section with a focus on the complex and conflicting role of institutional shareholders, which has caused the systemic dysfunction of shareholders' rights and responsibilities to monitor the corporation. While there is no genuine commitment to an ownership-based governance system at present, he suggests two main policy initiatives to tackle this issue: the first is enabling effective shareholder engagement in corporate governance through explicit legislation and commitment to enforcement by all branches of government, and the second is encouraging shareholder activism by arrangement for financing ‘activism’ either as an appropriate corporate expense or as a designated portion of the investment management fees.