1. PROJECT WORK
Models of Corporate
Governance
Presented By
SOUVIK DUTTA (ROLL-1)
Semester – 2nd
Subject-Corporate Governance

2. Models of Corporate Governance
INTRODUCTION
•Corporate governance 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.

3. Models of Corporate
Governance
NEED FOR A MODEL
Earning,
The essence of the model is to evaluate the “crafted”
principles are applied to the “LOGIC” of governance:
continuous
Versight,
uidance,
nformation,
ulture

4. Models of Corporate
Governance
•Following are some of the
models of corporate governance:
Indian Model
German Model

5. Models of Corporate Governance
Indian model
• The model of corporate governances found in India is a mix of the Anglo-American and
German models. This is because in India, there are three types of Corporation viz. private
companies, public companies and public sectors undertakings (which includes statutory
companies, government companies, banks and other kinds of financial institutions).
• Each of these corporation have a distinct pattern of shareholding. For e.g. In case of
companies, the promoter and his family have almost complete control over the company.
They depend less on outside equity capital. Hence in private companies the German
model of corporate governance is followed.

6. India
Models of Corporate Governance
India with its 20 million shareholders, is one of the largest emerging markets in
terms of the market capitalization.

7. Models of Corporate Governance

8. Models of Corporate Governance
German Model
• This is also called as 2 tier board model as there are 2 boards viz. The supervisory
board and the management board. It is used in countries like Germany, Holland,
France, etc.
• Usually a large majority of shareholders are banks and financial institutions. The
shareholder can appoint only 50% of members to constitute the supervisory board.
The rest is appointed by employees and labour unions.

9. UNIQUE ELEMENTS of the GERMAN MODEL
Which means it consist of a management board and supervisory board.
The 2 boards are completely distinct; no one may serve simultaneously on
a corporations management board.
It is set by law cannot be change by shareholders
Voting right restrictions are legal; these limit a shareholder to voting a
certain percentage of the corporation’s total share capital, regardless of
share ownership position

10. The German Model
Appoint -50% Appoint 50%
Appoint and
supervises
Manage
Own

11. THANK YOU
SOUVIK DUTTA