Does your firm have a system of governance to control the behavior of managers?

According to a lawyer friend, in the eyes of the law, managers are “agents” of the company, employed solely for the purpose of making-decisions regarding the use of assets owned by the company; as well as making decisions regarding legal obligations and commitments of the company. Therefore, the basic behavior of managers is governed agency law, tort law as well as contract law. Does your firm have a system of governance to control the behavior of managers based on these laws?