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Models for Corporate Governance - Coggle Diagram
Models for Corporate Governance
Anglo-American Model
Shareholders oriented model
Shareholders select Board of Directors
Directors rarely independent of management
Clear separation of ownership and management
Investors are discouraged to take active roles in governance
Other stakeholders - customers, employees & communities - secondary to the interest of investors.
German Model (European Model)
Workers are key stakeholders & should have the right to participate in management.
CG carried out through 2 boards
Supervisory board
Elected by shareholders. Employees also elect their representatives - 1/3 or 1/2 of Board.
Management Board
Appointed by Supervisory Board.
Social Control Model
full-fledged stakeholder representation on Board.
Create a Stakeholder Board over and above Board of Directors.
Stakeholder Board:
shareholders
employees
major consumers
Major suppliers
lenders
Reference:
http://papertyari.com/general-awareness/management/corporate-governance-models/