MODELS OF CORPORATE GOVERNANCE

As corporate business is generally managed by the Board of Directors and the board members are elected by shareholders, there are certain models of corporate governance that the company can follow to maintain transparency towards its stakeholders.

There are widely three models of corporate governance and social responsibility. Namely - Anglo American model, Japanese model and German Model. There is Indian model as well, which is a mixture of Anglo and German model.

Talking about the Indian market, there are mainly three types of companies that operate, private companies, public companies and public sector undertakings. These companies have specific shareholding patters and thus, require specific understanding. The Indian model of corporate governance thus suits them the best. It is primarily a mix of Anglo-American and German models of corporate governance.

Under the Anglo-American Model of corporate governance, the shareholders’ rights are recognised and given importance. Whereas, under the German model of corporate governance, the workers are considered the key stakeholders in the company and can have the right to participate in the management of the company.

For further details, please contact Ms. Divyani Garg at d.garg@excellenceenablers.in or click here.