Deviant or

Different
Models of Corporate
Governance

DANDA YOGA KRISHNA (013)

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Introduction
Learning
Oversight
Guidance
Information
Culture

In each country, the corporate

governance structure has certain
characteristics or constituent
elements, which distinguish it from
structures in other countries. To date,
researchers have identified three
models of corporate governance in
developed capital markets -

Anglo-US model

Japanese model
German model

JAPANESE MODEL
The Japanese model is characterized by a high level of stock ownership by
affiliated banks and companies A banking system characterized by strong, long-term links between
banks and corporation
A legal, public policy and industrial policy framework designed to
support and promote "keiretsu"
BOD composed of solely insiders and comparatively low (in some
corp., non-existent)level of input of outside shareholders
Equity Financing is important for Japanese Corporations
Insiders and their affiliates are the major shareholders in most
Japanese corporations.

In the Japanese model, the four key players are:

1.Main Bank(a major inside shareholder)
2.Affiliated company or keiretsu(a major inside
shareholder)
3.Management and the
4.Government
- Non-affiliated shareholders have little or no voice in japanese Governance
- There are few truly independent directors(representing outside shareholders)

GERMAN MODEL
German corporations are governed by a Supervisory board and a
Management board. The supervisory board appoints and
dismisses the management board, approves major management
decisions; and advises the management board. The supervisory
board usually meets once a month. A corporations articles of
association sets the financial threshold of corporate acts
requiring supervisory board approval. The management board is
responsible for daily management of the company.

Management
Board
VORSTAND

Supervisory
Board
Aufsichtsrat
Employees/lab
our Union &
Shareholders

Responsible for daily

management of the
company
Responsible for
appointing the
managementfor
board
Responsible
appointing members
to the supervisory

 Supervisory board oversees the management board and appoints its

members

Chairman of the supervisory board is representative of the

shareholders

Deputy chairman is a representative of the employees

Members of supervisory board are not involved in the day to day
management of company

Management board is made up of executives inside the company

The board of management is responsible for managing the company
And representing it in its dealings with third parties

It is the objective of Mitsubishi Hitachi Power Systems Europe GmbH to

conduct all business relations in an ethical impeccable and professional
manner. This includes to comply with legal and internal regulations, to
avoid any conflicts of interest and to protect the company's assets and
reputation; always under consideration of customs, traditions and social
values of the countries wherewe do business. Misconduct, alternative
solutions and workarounds are never in the interest of our company and
will not be tolerated.
There are 6 members on the Supervisory
Board of Mitsubishi Hitachi Power Systems
Europe GmbH. The Board was established
pursuant to the Act on one-third employee
participation on supervisory boards and in
keeping with the German Stock
Corporation Law. The constitutive meeting
was held on 14 November 2014.
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Each model identifies the following

constituent elements
Key players in the corporate environment
The share ownership pattern in the given country
The composition of the board of directors
The regulatory framework
Disclosure requirements for
Publicly-listed stock corporations
Corporate actions requiring shareholder approval
Interaction among key player
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The German corporate governance model differs

significantly from the Japanese model, although
some of its elements resemble the Japanese model.

THANK YOU

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