The Three Models of Governance

Closely affiliated company is one of the major key players in the corporate governance

Corporations Board of Directors are composed almost entirely of insiders and mostly composed of 50 members.

A wide range of institutional investors and financial specialists normally monitor a corporation's performance and its governance.

Shareholders owning at least 10% of the total share capital may convene an extraordinary general meeting of shareholders.

Equity financing is the most common method of raising capital for corporations in countries following this type of model of governance.

Major key players form a corporate governance triangle.

The average composition of Board of Directors range from 13-15 members only either insiders or outsiders.

The TEN largest shareholders of the corporation are required to be disclosed in an annual report or in the agenda for Annual General Meeting.

Background information on the nominees to the Board of Directors including their stock ownership in the corporation are required to be disclosed.

Starting early 1980's, shareholders holding at least 10% of the company's share capital are allowed to propose an issue to be included in the agenda for the Annual General Meeting or in the Extraordinary General Meeting.

Banks hold long-term stakes in corporations and the bank representatives may be elected to corporate boards. Banks also hold multiple service roles in corporate governance.

Individual stock ownership is very low but minority shareholders are allowed to bring up shareholder proposals to be taken up during the Annual General Meeting.

In corporations with less than 500 employees, shareholders exercise their full right to elect the members of the Board who will oversee the management.

The shareholder may be restricted by law as to exercise voting rights.

In large corporations, employees can elect 10 out of 20 members of the Board, while shareholders can elect 10 members to the Board from the representatives of banks and corporations .