Features of the classification of corporate governance models
Posted: Wed Jan 22, 2025 9:28 am
In most cases, the same classification method is used. Global integration between states leads to the fact that the features of corporate models are adopted by others and new variants are formed. Experts highlight 3 key characteristics in each method:
assignment of duties and powers to the board of directors;
quality of internal audit and control;
level of confidentiality.
The development of these importance of lawyer database characteristics in different countries is happening in its own way. For example, the US government is tightening laws. When a wave of indignation arose due to unfair work of brands, in 2002 the Sarbanes-Oxley Act was passed, which introduced a new procedure for providing reports on the activities of corporations. Access to data became freer. The new requirements affected both management processes and audits by auditors. Most American companies were forced to abandon previous methods of reporting and began to spend considerable amounts on external audits, which also became much more expensive.
Classification of corporate governance models
Thus, the change in legislation enabled companies to organize a high-quality internal control system and provide people with free access to information about the results of their activities. Thanks to this, many companies became more attractive to potential investors, and the stock market in the USA became more stable.
Governments in European countries have opted for a simpler method of control – national codes. Both public and private institutions have been involved in their creation. One such standard is the UK Corporate Governance Code, developed in 1991. It contains requirements and recommendations on what an exemplary board of directors and a quality management system should be like.
Similar codes are in force in many countries today: we know of more than a hundred similar documents in forty countries. They were introduced in stages, taking into account the experience gained in creating new rules. Most of them were formed in their countries. However, some are international:
"The Organization for Economic Co-operation and Development (OECD) Principles of Corporate Governance";
"Recommendations of the European Association of Securities Dealers (EASD)";
"Guiding principles of corporate governance of the Confederation of European Shareholders' Associations" and others.
assignment of duties and powers to the board of directors;
quality of internal audit and control;
level of confidentiality.
The development of these importance of lawyer database characteristics in different countries is happening in its own way. For example, the US government is tightening laws. When a wave of indignation arose due to unfair work of brands, in 2002 the Sarbanes-Oxley Act was passed, which introduced a new procedure for providing reports on the activities of corporations. Access to data became freer. The new requirements affected both management processes and audits by auditors. Most American companies were forced to abandon previous methods of reporting and began to spend considerable amounts on external audits, which also became much more expensive.
Classification of corporate governance models
Thus, the change in legislation enabled companies to organize a high-quality internal control system and provide people with free access to information about the results of their activities. Thanks to this, many companies became more attractive to potential investors, and the stock market in the USA became more stable.
Governments in European countries have opted for a simpler method of control – national codes. Both public and private institutions have been involved in their creation. One such standard is the UK Corporate Governance Code, developed in 1991. It contains requirements and recommendations on what an exemplary board of directors and a quality management system should be like.
Similar codes are in force in many countries today: we know of more than a hundred similar documents in forty countries. They were introduced in stages, taking into account the experience gained in creating new rules. Most of them were formed in their countries. However, some are international:
"The Organization for Economic Co-operation and Development (OECD) Principles of Corporate Governance";
"Recommendations of the European Association of Securities Dealers (EASD)";
"Guiding principles of corporate governance of the Confederation of European Shareholders' Associations" and others.