This paper is about making good mechanism for company’s corporate governance. This article further helps in examining the relationship between the two parts of mechanism i.e. internal and external mechanisms of corporate governance. The need for proper governance is to create a culture of transparency, awareness and clearness in the working and operations of corporation. Having a healthy corporate governance, it ensures a company in achieving long term goals and maximising long term company value as well as goodwill. In this paper we further put focus on how to keep the stakeholders interest safe and assist in reducing agency costs and clear by providing statutory provisions created by different regulatory bodies for the company. Regulatory framework assist the firm in improving their practices as well helps in creating better output and performance.