Corporate governance models
Anglo-Saxon model (Anglo-US Model)
crafted by the more individualistic business societies in Great Britain and the United States
Shareholders
vote for
Board of directors
Most companies with Anglo-US corporate governance systems have legislative controls over shareholders' ability to assert practical, day-to-day control over the company
The capital and shareholder structure are highly dispersed
regulatory authorities, such as the U.S. Securities and Exchange Commission (SEC), explicitly support shareholders over boards or managers
Appoint and control
References:
https://www.investopedia.com/terms/c/corporategovernance.asp
https://www.thecorporategovernanceinstitute.com/insights/lexicon/what-is-the-continental-governance-model/
https://www.researchgate.net/figure/Figure-3-Japanese-model-of-corporate-governance-Source-Adapted-from-Mostepaniuk-2017_fig3_337858198
Managers and chief officers
Board of directors and the shareholders are the controlling parties
beholden to voting shareholders' approval
Derive their authority from the board of direcors
The managers and chief officers ultimately have secondary authority
The Continental Model (German model)
supervisory board
Appoints and Oversees
Size is determined by country laws
Consisting of outsiders: shareholders, union representatives, employees, banks
National interests (government and popular priorities) have a strong influence. Companies can be expected to align with government objectives
management board
banks play heavy role in investment
Large union and employee interests
The Japanese Model
Banks
Smaller, independent, individual shareholders have no role or voice
major shareholders
(called Keiretsu)
Appoints
Supervision board
including president
board of directors / exclusive management
is usually made up of insiders, including company executives
Keiretsu may be invested in common companies or have trading relationships
Provides managers
Regulators
Corporate management
Consists of company insiders: executives
The government affects the activities of corporate management via its regulations and policies
central banks
Japanese Ministry of Finance
business entities, the government, union groups
Legislature
Regulatory authorities
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