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Corporate Governance Models - Coggle Diagram
Corporate Governance Models
The Anglo-American Model
Stakeholders involved
Shareholders
In control
Provide the company with funds
Withdraw funds & support if dissatisfied
Important issues brought to their attention
Vote for important decisions that need to be made
Company
Management
Run the company in a way that maximises shareholder interest
Align management behaviour with the goals of shareholders
Board of directors
In control
Consists of insiders & independent members
Vendors & Employees
Acknowledged
Lack control
German Model
Shareholders involved
Executive Board
In charge of corporate management
Consists of insiders
Such as executives
Supervisory Board
Oversees corporate management
Shareholders appoint the supervisory board which in turn appoints the executive board
Consists of outsiders
Banks
Union representatives
Shareholders
Government & national interests
Banks
Financial & investment role
Decision-making role
Japanese Model
Shareholders involved
Major shareholders)
Japanese officials
May remove directors from the board if profits wane
Banks & Japanese Ministry of Finance
Review relationships between groups & control negotiations
Government
Influences the organisation via its regulations & policies
Board of Directors
Consists of insiders, including company executives
Small, independent, individual shareholders
No role
No voice
No control
Two dominant legal relationships between:
One:
Shareholders
Employee unions
Suppliers
Creditors
Customers
Two:
Administrators
Shareholders
Managers