Internal and External Corporate Governance

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Corporate Governance (CG) can be viewed as the system by which companies are directed and controlled. Also companies can be held accountable by CG, limiting managerial discretion in order to protect the interests of outsiders in the corporation. These 'outsiders' can be shareholders, stakeholders, other interested parties or even society as a whole. Any CG 'system' consist of a large number of mechanisms. We can broadly categorize CG mechanisms into two groups: 1. Internal Corporate Governance Internal corporate governance encompasses the controlling mechanisms between various actors inside the firm: the company’s management, its board and the shareholders. In this form, the shareholders and other constituents 'delegate' the controlling function to internal entities or mechanisms, such as the Supervisory Board (in case of two-tier board) or the Board of Directors (one-tier) and/or special committees. Examples of internal corporate governance mechanisms:

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		Ashok Asthana, Consultant, India
	Corporate Governance - The Role of the Customer I feel customers play a very important role in inf (...)

		Hazem Yassin, Manager, Saudi Arabia
	Keep Corporate Governance as Simple as Possible Dear Jaap your article was very good, concentrated (...)

		D P BABU, Strategy Consultant, India
	Internal and External Corporate Governance The effectiveness in counterbalancing internal and (...)

		alim sale, Strategy Consultant, Kenya
	Corporate Governance Mechanisms (Intern and Extern) Thanks for the interesting analysis of all element (...)

		Greenhow, Consultant, Sweden
	Are Sub-consulting Firms part of Internal Governance? Your examples of external governance mechanisms se (...)

		Adam Mohammed Baba, Director, Ghana
	Corporate Governance and Local Government Service As an employee of local government (LG) service, y (...)

		Madan Gopal Agarwal, Business Consultant, India
	Corporate Governance Excellent articulation and perspective, Jaap. The (...)

		Douglas Ferguson, Consultant
	Corporate Governance and Joint Ventures How might this structure be applied in joint ventu (...)

		Adam Mohammed Baba, Director, Ghana
	Corporate Governance and Local Government Service @ : Thank you Jaap for the excellent comment on my (...)

		Greenhow, Consultant, Sweden
	External Influences and CG Mechanisms I'd appreciate clarification of some of the extern (...)

		AIDA ACUBA, Professor, Philippines
	Transparency in Internal and External CG @: I agree with your opinion... I believe there mu (...)

		Suleiman C. Muttani, Consultant, Tanzania
	Corporate Governance is More of Internal Value Than for External Control I would thank the Mr de Jonge for this interesting (...)

		Kumsha, Student (MBA), Sao Tome and Principe
	Good Ethics in Internal and External Corporate Governance @: I agree with you Madan, I also believe that eth (...)