According to Professor Kenneth Scott of Stanford Law School, “corporate governance includes every force that bears on the decision-making of the firm. That would encompass not only the control rights of stockholders, but also the contractual covenants and insolvency powers of debt holders, the commitments entered into with employees, customers and suppliers, the regulations issued by governmental agencies, and the statutes enacted by parliamentary bodies.” (March 1999)
The corporate governance structure of corporations in a given country is determined by several factors: the de facto realities of the corporate environment in the country; each corporation’s articles of association; and the legal and regulatory framework outlining the rights and responsibilities of all parties involved in corporate governance.
Different models of corporate governance differ according to the variety of capitalism in which they are embedded. In each country, the corporate governance structure or model has certain attributes or essential elements, which separate it from the structures of other countries. Currently, researchers have identified three widely accepted types of corporate governance structures developed in capital markets. These are the Anglo-American model, the Japanese model, and the German model:
Note: Submitted as a requirement for GAC 731. GAC 731 Internal Audit Theory and Practice is a major subject for Master of Science in Accountancy Program at University of the East Graduate School (Manila, Philippines)
0 comments:
Post a Comment