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Internal and External Corporate Governance
Jaap de Jonge, CEO, Netherlands, Editor
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...
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Keep Corporate Governance as Simple as Possible
Hazem Yassin, Manager, Saudi Arabia, Member Dear Jaap your article was very good, concentrated and short with clear idea. In our company we already have a CG manual in place, but unfortuntily we... |
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Internal and External Corporate Governance
D P BABU, Strategy Consultant, India, Member The effectiveness in counterbalancing internal and external corporate governance mainly rests with the disclosure philosophy of the company ( |
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Corporate Governance
Madan Gopal Agarwal, Business Consultant, India, Member Excellent articulation and perspective, Jaap. The key is self-realisation and willingness of the board/company/owners etc. that they are accountable t... |
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Corporate Governance and Joint Ventures
Douglas Ferguson, Consultant, Member How might this structure be applied in joint ventures where there is a 50-50 ownership stake between the partners? In addition, the jv is designed to ... |
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External Influences and CG Mechanisms
Greenhow, Consultant, Sweden, Member I'd appreciate clarification of some of the external "mechanisms". Are you using mechanism as synonymous with influence? I can see how legislation wit... |
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