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3 Models of Corporate Governance - Coggle Diagram
3 Models of Corporate Governance
The Anglo-US model
Orientated towards
The Stock Market
Share Holding Structure
Dispersed and Flexible
Controlling Parties
Board of Directors
Managers get authority from the board
Shareholders
External Control System
U.S. Securities and Exchange Commission (SEC)
Rule Base approach
The German model
Orientated towards
The Banking Market
Share Holding Structure
Concentrated
2 Controlling Parties
Supervisory Council
council controls the executive board
Chosen by employees and shareholders
Executive Board (Board of Directors)
in charge of corporate management
Internal Control System
Government and National Governement
Strong influence to ensure attention is paid to the corporation's responsibility to submit to government objectives and the betterment of society.
Banks
large role financially and in decision making
Principle approach
The Japanese model
Orientated towards
The Banking Market
Share Holding Structure
The most concentrated and rigid
Two legally responsible relationships
Between shareholders, customers, suppliers, creditors, and employee unions
Between administrators, managers, and shareholders.
Internal Control
Japanese regulators play a large role in corporate policies. The central banks and the Japanese Ministry of Finance implicit control over negotiations.
Lack of transparency