The over arching issue of corporate governance is capital formation and the cost of capital. However, while working in the control community, we sometimes get too interested in the trees i.e.: control procedures and miss looking at the forest, the object of the business and the reason for the development of governance i.e.: control over the capital formation. Governance has a place in business but it also has a cost. While regulation is important, at some point it will begin to work as a counter force to entrepreneurial risk taking and business building and may affect related capital markets.