---

[attachment=8133]

PRESENTED BY:
JATIN ARORA
VIVEK AGRAWAL

CORPORATE GOVERNANCE SYSTEMS
Management always operates in a hierarchy.
Ordering of responsibilities, with authority delegated downwards through the organization and accountability upwards to ultimate boss.
A useful way of depicting the interaction, is to present the board as a circle superimposed on the hierarchical triangle of management.

THE ANGLO-AMERICAN MODEL
Also known as Unitary Board Model.
All directors participate in a single board comprising both executive and non-executive directors.
Shareholder-oriented approach; ownership of companies is more or less equally divided between individual and institutional shareholders.
Basis of corporate governance in America, Canada, Australia and other commonwealth law countries including India.

THE GERMAN MODEL

Also known as the Two-Tier Board Model.
Societal-Oriented approach; corporate governance is exercised through two boards, the upper board supervises the executive board.
Shareholders elect only 50% of supervisory board and the other half is appointed by labor unions.
Basis of corporate governance in Germany, Holland, and to an extent France.

---