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Economic Entity and Corporate Governance - Coggle Diagram
Economic Entity and Corporate Governance
Corporate Governance
Deals with major Decision-Making within a company
Activities are undertaken as needed, not necessarily on a daily basis
Who should govern a company?
What does it mean to govern a company?
How companies are governed?
Improper Economic Entity
Occurs when a company is governed by only a subset of the E.E or by non-institutional external subjects (e.g. banks).This can negatively impact performance as decisions might prioritise personal or external interests over the EE's immediate goals
Economic Entity
The economic entity needs to meet
Critical Contributions
Dependant Economic Interests
Typical Corporate Governance Process
CEO
Management Team
BoD
Other Employees
Shareholders' Meeting
Types of Ownerships
Distributed Ownership (Public Company)
The Rhenish Model (Banks are significant Shareholders)
Concentrated Ownership (Family owned)