models of-corporate-governance-zecharia
TRANSCRIPT
Models of Corporate Governance
(Zechariah's Comparative Study)
1. Key Players
Anglo-US Model
1. Management
2. Directors
3. Shareholders
Japanese Model
1. Main Bank
2.Affiliated Comp. (Keiretsu)
3. Management
4. Government
German Model
Banks
2. Share Ownership PatternAnglo-US
ModelInstitutional
Investor (61%-UK)
Individuals-21%38% on 1981
Institutional-53.3%-US
Japanese ModelFinancial
Institution-43%
Corporation-25%
Foreign Owners-3%
German Model
Institutional owners-29%
Corp.’s Equity Market-41%
Institutional Agent-3%
Individual Owners-4%
2. Share Ownership PatternAnglo-US
ModelInstitutional
Investor (61%-UK)
Individuals-21%38% on 1981
Institutional-53.3%-US
Japanese ModelFinancial
Institution-43%
Corporation-25%
Foreign Owners-3%
German Model
Institutional owners-29%
Corp.’s Equity Market-41%
Institutional Agent-3%
Individual Owners-4%
Anglo-US Model
1. Insiders (executives, managers, employees
etc)2. Outsiders
(no direct relationship to
the corp.)
Japanese Model
1. Insiders (exec.
Managers, heads of decision makers)
German Model
1. Management
Board (Vorstand)
2.Supervisory Board
(Aufsichtsrat)
3. Composition of BODs
Anglo-US Model
1. Pension fund
regulation Laws
Japanese Model
1. Industrial Development
Policies
German Model
1.Industrial democracy
act
2.Employee Co-
determination Law
4. Regulatory Framework
5. Disclosure Requirements• Anglo-US Model
• 1. Corporate Financial data• 2.Capital structure breakdown• 3.Substantial background info. On nominee to
BOD.4.Aggregate compensation paid to all exec. Officer5. All shareholders holding 5% or more total share capital6. Info. On proposed mergers and restructuring, amendments and names of indi.
5. Disclosure Requirements• Japanese Model1.Financial data on the corp. (semi-annual)2. Corp’s capital structure data3. Background info. On each nominee to the BOD4. Aggregate date on compensation5. Info. on proposed mergers and restructuring6. Proposed amendments to the article of
associations7.Names of individuals and or companies
proposed as auditors.
5. Disclosure Requirements• German Model1. 1.Financial data on the corp. (semi-annual)2. Corp’s capital structure data3. Limited info. On each supervisory board
nominee4. Aggregate date on compensation5. Any substantial shareholders holding 5% or
more on corp’s total share capital.6. 6. Proposed amendments to the article of
associations7.Names of individuals and or companies proposed
as auditors.
6. Corporate Actions Requiring Shareholder Approval
Anglo-US • Routine- (1) Election of Directors (2) Appointment of
Auditors• Non-routine-(1)Stock option plan amendments (2)Mergers
and takeovers (3) Restructurings (4) Articles of Incorporation Amendments
Japanese• Routine-(1) Dividend Payments and Reserves Allocations (2)
Election of Directors and appointment of auditors• Others- (3) Capital Authorizations (4) Amendments to
articles (5)Payment of Retirement Bonuses (6)Aggregate Compensation Increase
German •Routine- (1) net income allocation (2) Managerial Act ratification (3) Supervisory board election (4) Auditor Appointment•Others- capital authorization, affiliation agreements, change in articles of association, aggregate compensation ceiling increase
7. Interaction Among Players
Anglo-US Model
-Voting rights are valid even
with or without the presence of shareholder (voting by
proxy or by mail).
Japanese Model
-Held by majority of
shareholders and others are excluded; They
can vote through proxy
or mail; Shareholder’s
dissent is discouraged.
German Model
-designed to include the interests of labor, corp., banks and
shareholders. For the benefit
of the key players.
•Fin~
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