3 Models of Corporate Governance
The Anglo-US model
The German model
Orientated towards
Orientated towards
The Banking Market
The Stock Market
Share Holding Structure
Share Holding Structure
Concentrated
Dispersed and Flexible
2 Controlling Parties
Controlling Parties
Board of Directors
Shareholders
External Control System
U.S. Securities and Exchange Commission (SEC)
Managers get authority from the board
Supervisory Council
Executive Board (Board of Directors)
council controls the executive board
in charge of corporate management
Chosen by employees and shareholders
Internal Control System
Government and National Governement
Banks
Strong influence to ensure attention is paid to the corporation's responsibility to submit to government objectives and the betterment of society.
large role financially and in decision making
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
Rule Base approach
Principle approach