Does an electronic speed control kit replace the engine's governor?

No. The GS740 and GS740-3P are not governors. The engine's mechanical governor stays in place and it is the one that regulates fuel when the load changes; the kit only drives the position of the throttle lever remotely. The closed loop on the GS740-3P is on actuator position measured by an AS5600 encoder, not on engine speed.

A governor is a regulator that measures engine speed and continuously corrects the fuel quantity. In the mechanical type, flyweights work against spring force; in the electronic type there is a speed sensor and the regulation is tighter.

The GS740 family does not enter this chain. What it does is move, on your behalf, the throttle lever you would otherwise push by hand; in other words it is an electronic throttle lever. The governor stays on the engine and continues to determine how speed behaves under load.

If speed is to be held constant under load, the GS740's optional active-feedback speed stabilisation module is required; this module relies on a sensor that reads engine speed. Control without speed feedback is open loop, and speed drifts as the load changes. The kit does not take over the safety chain either: the fuel shut-off solenoid, the air shut-off valve if fitted, and the oil pressure/temperature protections must be present in the engine's own system.

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