What are the main reason that an agency relationship exist in the corporate? in this context, what kinds of problems can arise?

Agency relationship exists in the corporate form of association due to the separation between the ownership and control in this manner, it is the fundamental concept on which other business or other relationships are built, such as partnerships, corporations, trusts. Therefore a fiduciary relation which results from the sign of assent by one individual to another that the other individual will act for his benefit and is dependent upon his control; and consent by the other so to act. 

These problems can arise when:

Loyalty issues: occurs when an agent neglects to act exclusively to help their principal, rather acts in interest of the agent or an outsider and neglects to keep any data or information got throughout the organization as classified. 

Neglect of agent's safety: this happens when the principal fails the obligation to provide its agents and workers with safe working premises, gear, and conditions, and to investigate working conditions and caution agents and representatives of risky zones. 

Disobedience by the agent: arises when an agent loathes the obligation to follow all legitimate and plainly expressed guidelines of the principal.

Accounting problems: occurs when an agent fails the obligation to keep and make accessible to the principal a record of all property and cash got and paid out on principal's behalf, including gifts got from third persons. 

Neglect of reimbursement by the principal: occurs when the principal neglects to repay the agent at whatever point an agent dispenses amounts of cash to fulfill the principal's solicitation or to pay for essential costs brought about in the sensible execution of his or her duties 

Low performance by the agent: arises when an agent neglects to utilize sensible industriousness and ability in undertaking the task in its entirety.

Issues with compensation: arises when the principal fails to pay the agent, in a timely manner, for those services rendered.