A clearly defined corporate governance structure promotes transparency and fairness, helping your business build strong relations with its shareholders as well as the local community. It helps define roles, ensures accountability, and permits compliance with the law and regulations. It also helps a company’s growth strategy over the long term by aligning shareholder interests with the interests of the board as well as management.
Corporate governance is a complicated concept that is dependent on the mission and culture of your company. A few of the key concepts to keep in mind are:
Unitary Board Structure
In this system of corporate governance, the board of director is accountable for overseeing and making decisions regarding corporate activities. The board is made up of executive and nonexecutive directors. This structure is most common in mid-sized and small businesses.
Continental Model
A two-tiered model, the Continental model gives control to a management board and a supervisory board. The management board is composed of employees from the company like managers and executives. The supervisory board is comprised of outsiders, such as bankers and union representatives with stakes in a company.
Stakeholder-Oriented Governance
This type of governance structure, unlike traditional structures that place a high value on shareholder interests, is a holistic approach that considers all stakeholders, including employees, customers and vendors and the community. It encourages boards and committees to develop effective engagement programs and to adopt policies that reflect larger environmental and social concerns. The board must be transparent and open about its decision-making processes and make this information available to all parties. It is also important to ensure that there are clear lines of communication between the board, the company management and shareholders.
www.boardroomdirect.blog/real-estate-data-room-and-its-functionality/
