Anglo American Model of Corporate Governance

Anglo American Model of Corporate Governance

1. Anglo American Model of Corporate Governance From, Ambika K.R I M.com Under the guidance of Sundar B. N. Asst. Prof. & Course Co-ordinator GFGCW, PG Studies in Commerce Holenarasipura

2. CORPORATE GOVERNANCE Anglo American Model of Corporate Governance .

3. Content Introduction Defecation Anglo American Model Regulatory frame work Features of Anglo american Model Conclusion Reference

4. Introduction Under the anglo american model of corporate governance the share holder rights or recognised and given importance. They have the right to elect all the members of the board and the board directors the management of the company companies or run by professional managers who have negligible ownership stake.

5. Definition The Anglo American Model of CSR is usually seen as being premised on the idea of shareholder value that is the idea of maximizing shareholder returns (dividends) and capital Growth ( Shre price) to be paramount at the expenses of other stake holders.

6. Anglo American Model Corporate governance systems very around the world. This because in some cases, corporate governance focuses on link between a shareholder and company. Some on formal board structures and board practices and yet others on social responsibilities of corporation. There is no one model of corporate governance which is universally acceptable as each model has its own advantages and disadvantages. This model is also called an anglo saxon model and is used as basis of corporate and is used as basis of corporate governance in USA, U.K, Canada, Australia and some common wealth countries.

7. The board usually consist of executive directors and few independent directors the board often has limited ownership stakes in the company. The shareholders appoint directors who in turn appoint the managers to manage the business thus there is separation of ownership and control. This system (Model) relies on effective communication between shareholders. Board and management with all important decisions taken after getting approval of shareholders (By voting)

8. Anglo American Model Share Holders Elect Board of Directors (supervisor) Stake holders Appoints and supervises Officers (Manager) Creditors Manage Company Monitors and Regulates Regulatory and Legal System

9. Regulatory frame work Laws regulating pension funds also have on important inpect on corporate governance in 1988, the agency of the U.S Department of labor rules that. Pension fund a “Fiduciary responsibilities to exercise there stake ownership right huge impact on behavior of private pension funds and other institutional investors have taken a keen interest in all a spects of corporate governance share holders right and noting at annual general meetings. the regulatory framework of ok in corporate governance is established in parliamentary and rules established by self regulatory organizations such as securities and investment board which is responsible oversight of securities market this is not a government agency like the 8be in us

10. Features of Anglo American Model This is shareholders oriented model it is also called Anglo Saxon approach to corporate governance being the basis of corporate governance in Britannia Canada America Australia and common wealth contries including india . Directors are rarely independent of management. Companies are run by professional manages who have negligible ownership stake there is clear separation of ownership and management. Institution in restores like banks and mutual funds are portfolio investors when they are of satisfied with the company’s performance they simple sell their shakes is market and quit. The disclosure norms are comprehensive and rules against the insider trading are right.

11. The small investors or protected and large investors are discouraged to take active role in corporate governance Ownership of shares is distributed Banks only slightly engage in the operation of the company. Capital is raised on large and liquid Capital markets. Internal supervisory authority is the board of directors. Market is an achieve Mechanism of control over the corporation. Measure of success is the share price and divided. Capital markets are characterized by high transparency.

12. Conclusion The existence of an anglo american model of corporate governance and capitalism the UK Model relies heavily on intuitional share holder engagement and regulatory rules and expost litigation.

13. Reference https://en.m.wikipedia.org.wiki Slideshares images. Corporate governance related books.