This presentation talks about meaning of Corporate Governance, models of corporate Governance. It includes Anglo-American, German, Japanese Model of governance. Go through to know more about the CG & Business Models.

1. Department: HRM
Models of Corporate
Governance
By: Nikhil Shekhar
Batch: 2016-18

2. Models of Corporate Governance
What is it about C.G?
•The C.G systems vary 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 corporations.
•However, basically, corporate governance is seen as
the process by which organizations are run.
•There is no one model of corporate governance
which is universally acceptable as each model has
its own advantages and disadvantages.
Corporate
Governanc
e
ANGLO-
AMERICAN
MODEL
GERMAN
MODEL
JAPANESE
MODEL
Xavier Institute of Management Jabalpur
2

3. 3Xavier Institute of Management Jabalpur
Anglo-American Model
U.S.A, U.K, Canada, Australia and common wealth countries.

4. Xavier Institute of Management Jabalpur 4
Shareholders BOD Shareholders
Officers/Managers
Company
Regulatory/
Legal System
Creditors
Elect
Appoints & Supervises
Monitor & RegulatesLies on
Anglo-American Model

5. German Model
Germany, Holland, France…
Xavier Institute of Management Jabalpur 5

6. Xavier Institute of Management Jabalpur 6
Supervisory Board
Management Board
(Labour Relation Board)
Company
Employees
&
Labour Union
Appoint 50%
Appoints & Supervises
Owns
Manage
Appoint 50%
Shareholders
German Model

7. Japanese Model
A Business Network Model
Xavier Institute of Management Jabalpur 7

8. Managers
Consult
Xavier Institute of Management Jabalpur 8
Supervisory Board
(Including President)
Executive Management
(Primarily Board of Directors)
Company
Appoints
Ratifies the President’s decision
Owns
President
Shareholders
Provides Loan
Provides, Managers, monitors
and acts in emergencies
Main Bank
Provides
Managers
Owns
Japanese Model

9. Indian Model
Collaboration of Anglo-American & German Models
• This mix is because in India, there are three types of corporations
i.e. Private, Public Co. and Public Sectors undertakings (which includes
statutory companies, government companies, banks and other kind of
financial institutions).
• Each of these corporation have a distinct pattern of shareholding.
Xavier Institute of Management Jabalpur
9
In case of companies, the promoter and his family have almost
complete control over the company. They depend less on outer equity
capital. Hence in private companies the German Model of corporate
governance is followed.

10. Xavier Institute of Management Jabalpur 10