Essay on Corporate Governance Structure

Submitted By dewayne70072
Words: 783
Pages: 4

1.

The corporate governance structure of combined stock corporations in a specified country is dogged by several factors: the legal and regulatory framework outlining the truths and responsibilities of all parties involved in corporate governance the de facto realities of the corporate environment in the country; and each corporation’s articles of association. While corporate governance supplies may vary from corporation to corporation, several de facto and de jure factors touch corporations in a similar way. Therefore, it is possible to outline a "model" of corporate governance for a given country. In each country, the corporate governance structure has certain features or basic elements, which distinguish it from structures in other countries. To date, scientists have identified three models of corporate governance in developed capital markets. These are the Anglo-US model, the Japanese model, and the German model. Each model identifies the following constituent elements: key players in the corporate environment; the share ownership pattern in the given country; the composition of the board of directors. The regulatory framework disclosure requirements for publicly-listed Stock Corporation. The corporate actions requiring shareholder support and interaction among the key players
Most corporate governance structures are comprised of a board of directors, an executive management team, and departments that may be organized according to function, division, or a combination of both. The board of directors usually represents the highest level of power, control, and authority in an organization. They vote on company directives and help shape executive strategies. In terms of publicly owned corporations, the board of directors also acts as a sort of liaison between the company's executive management team and its shareholders. A compacted organization's structure makes front-line staff and managers responsible for implementing the policies and procedures of executive management. Of the two main corporate governance structures, it allows the least amount of creativity and flexibility for its staff. They are usually not involved in the decision making process that directly affects how they perform their jobs. Some organizations solicit feedback from front-line employees, but implementation of those suggestions can often be delayed or brushed aside.
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Equity financing is a collective method of rising capital corporations of United Kingdom and the United States. It’s not amazing to me that the US is the largest capital market of the free world, and that the London Stock Exchange is the third largest stock exchange in the world after the New York Stock Exchange and Tokyo.
The Japanese characterized their capital by a high level of stock ownership by affiliated banks and companies over a long term amid bank and corporations. Insiders and their affiliates are the major shareholders in most Japanese corporations. The main bank system and the keiretsu are two different, yet overlapping and complementary, elements of the Japanese model. Almost all Japanese corporations have a close relationship with a main bank. The bank provides its corporate client with loans as well as services related to bond issues, equity issues, settlement accounts, and related consulting services. The main bank is generally a major shareholder in the corporation In the US; anti-monopoly legislation prohibits one bank from providing