German Model of Corporate Governance

German Model of Corporate Governance

1. PRESENTED BY: ANITHA S 1 ST M.COM Under the guidance of Sundar B. N. Asst. Prof. & Course Co-ordinator GFGCW, PG Studies in Commerce Holenarasipura

2. CONTENTS German model Introduction Need for a Model Elements Key players Ownership pattern
Board of Directors Regulatory Framework Conclusion Bibliography

3. MODELS OF CORPORAT GOVERNANCE Corporate governance system very around the world. This because in some cases corporate governance focuses on link between a shareholder and company.Some On formal board structure and board practices and yet other on social responsibilities of corporation .

4. MODEL OF CORPORAT GOVERNANCE The essence of the model is to evaluance the”Crofted ” principal are applied to the LOGIC of governance continuous NEED FOR A MODEL

5. MODEL OF CORPORAT GOVERNANCE GERMAN MODEL

6. GERMAN MODEL This is also called as 2 tier board model as there are 2 board Viz. The supervisory board and the management board.It is used in countries like GERMANY, HOLLAND, FRANCE etc. Usually a large majority of shareholders are Banks and financial institutions.The shareholder can appoint only 50% of members to constitute the supervisory board.The rest is appointed employees and labour unions.

7. UNIQUE ELEMENTS OF THE GERMAN MODEl Two-tiered board Structure Size of supervisory board Voting right Restrictions

8. GERMAN MODEL

9. German banks (banks usually play a multi faceted role as shareholders lender issuer both equity and debt depository) Corporate shareholder (to the lesser extent)

10. Composed of
1.Management board. 2. Supervisory board.

11. REGULATORY FRAMEWORK Regulatory of Germany’s stock exchange however the mandate of the states. Germany has a strong federal traditiona both federal and state law influence corporate governance.

12. CONCLUSION The German system of corporate governance has traditionally been characterised By the important role that large shareholders and banks play,a two-tier board structure with labour participation on the supervisory board of large campanies,the absence of hostile takeovers and a legal framework based on statutory

13. BIBLIOGRAPHY Introduction to German model(Retrieved from, https://www . SlideShare.net /mobile/ souvikduttak /two-models-of-corporate-governance)
German model(Retrieved from, https ://www . SlideShare .net / mobile/Katherinesevilla2 /models-of-corporate-governance-75657642)

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