Anglo American Model of Corporate Governance

1. From,
Ambika K.R
I M.com
Under the guidance of
Sundar B. N.
Asst. Prof. & Course Co-ordinator
GFGCW, PG Studies in Commerce
Holenarasipura

2. CORPORATE GOVERNANCE
Anglo American Model of Corporate Governance
 .

3. Content
 Introduction
 Defecation
 Anglo American Model
 Regulatory frame work
 Features of Anglo american Model
 Conclusion
 Reference

4. Introduction
 Under the anglo american model of
corporate governance the share holder rights
or recognised and given importance. They
have the right to elect all the members of
the board and the board directors the
management of the company companies or
run by professional managers who have
negligible ownership stake.

5. Definition
 The Anglo American Model of CSR is usually seen as
being premised on the idea of shareholder value that is
the idea of maximizing shareholder returns
(dividends) and capital Growth (Shre price) to be
paramount at the expenses of other stake holders.

6. Anglo American Model
 Corporate governance systems very around the world. This
because in some cases, corporate governance focuses on
link between a shareholder and company. Some on formal
board structures and board practices and yet others on
social responsibilities of corporation.
 There is no one model of corporate governance which is
universally acceptable as each model has its own
advantages and disadvantages.
 This model is also called an anglo saxon model and is used
as basis of corporate and is used as basis of corporate
governance in USA, U.K, Canada, Australia and some
common wealth countries.

7.  The board usually consist of executive directors and
few independent directors the board often has limited
ownership stakes in the company.
 The shareholders appoint directors who in turn
appoint the managers to manage the business thus
there is separation of ownership and control.
 This system (Model) relies on effective communication
between shareholders. Board and management with
all important decisions taken after getting approval of
shareholders (By voting)

8. Anglo American Model
Share
Holders Elect Board of Directors
(supervisor) Stake holders
Appoints and
supervises
Officers
(Manager)
Creditors
Manage
Company
Monitors and
Regulates
Regulatory and
Legal System

9. Regulatory frame work
 Laws regulating pension funds also have on important inpect
on corporate governance in 1988, the agency of the U.S
Department of labor rules that.
Pension fund a “Fiduciary responsibilities to exercise there
stake ownership right huge impact on behavior of private
pension funds and other institutional investors have taken a
keen interest in all a spects of corporate governance share
holders right and noting at annual general meetings.
the regulatory framework of ok in corporate governance is
established in parliamentary and rules established by self
regulatory organizations such as securities and investment
board which is responsible oversight of securities market this
is not a government agency like the 8be in us

10. Features of Anglo American Model
 This is shareholders oriented model it is also called Anglo Saxon
approach to corporate governance being the basis of corporate
governance in Britannia Canada America Australia and common
wealth contries including india.
 Directors are rarely independent of management.
 Companies are run by professional manages who have negligible
ownership stake there is clear separation of ownership and
management.
 Institution in restores like banks and mutual funds are portfolio
investors when they are of satisfied with the company’s
performance they simple sell their shakes is market and quit.
 The disclosure norms are comprehensive and rules against the
insider trading are right.

11.  The small investors or protected and large investors are
discouraged to take active role in corporate governance
 Ownership of shares is distributed
 Banks only slightly engage in the operation of the
company.
 Capital is raised on large and liquid Capital markets.
 Internal supervisory authority is the board of directors.
 Market is an achieve Mechanism of control over the
corporation.
 Measure of success is the share price and divided.
 Capital markets are characterized by high transparency.

12. Conclusion
 The existence of an anglo american model of
corporate governance and capitalism the UK
Model relies heavily on intuitional share
holder engagement and regulatory rules and
expost litigation.

13. Reference
 https://en.m.wikipedia.org.wiki
 Slideshares images.
 Corporate governance related books.