Corporate Governance: One-tier versus Two-tier Boards

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Corporate Governance > Best Practices > Corporate Governance: One-tier versus Two-tier Boards

Corporate Governance: One-tier versus Two-tier Boards
Jaap de Jonge, Management Consultant, Netherlands
Somebody asked me the other day for the differences between the two main corporate governance systems (1-tier and 2-tier boards) existing today as well as the way they're heading. I couldn't find a reasonably concise overview anywhere, so I created the summary below. Please note that the precise characteristics of any of these governance models depend on the jurisdiction of the company concerned, and the implementation in the company concerned. Also corporate governance systems are changing constantly to reflect changes in the way society sees corporations.

Source: 12manage.comCharacteristicsOne-tier Boards (also "Unitary model")Two-tier Boards (also: "Dual model")OrganizationOne-layered board structureTwo-layered board structureCompositionThere is only one single Board of Directors, composed out of both executive directors as well as non-executive directors. In the classic form, the executive directors used to (...) Read more? Sign up for free

 

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One-tier versus Two-tier Boards
Jan Riven, Consultant, Canada, Member
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One-tier versus Two-tier Boards
Jaap de Jonge, Management Consultant, Netherlands
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