Corporate governance is a set of rules and structures that govern the activities of businesses. It includes the accountability of a company’s board of directors and senior management in avoiding conflicts of interests among shareholders and management in order to promote transparency, as well as making sure that the company is in compliance with the laws and regulations. It also promotes fairness among stakeholders and supports the attainment of the company’s goals. To select the most effective corporate governance model for your business it is crucial to know the various kinds.

Shareholders own a corporation and have rights, such as the right to vote on issues and to receive information that relates to their investment decisions as well as voting decisions. As the shareholders, they are entitled to expect boards and managers to act as long-term stewards for their investments. Shareholders also demand a high degree of corporate transparency.

There are many different models of corporate management such as the Anglo/US model, as well as the German and Japanese models. Each model has a distinct focus, and each manages risks to business in a different way. There are a variety of corporate governance models and also national variations.

The continental model has two groups that oversee the company. The management board is comprised by insiders from the company such as executives, while the supervisory board is comprised of outsiders, such as stockholders or union representatives. The model is well-known for its focus on national interest and government and the company’s obligation to serve society and contribute to its improvement.