Which is best corporate governance model according to ur understanding and why
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7 Important Models of Corporate Governance
Canadian Model: Canada has a history of French and British colonisation. ...
UK and American Model: Sarbanes Oxley Act: ...
German Model: Germany is known for industrialisation since beginning of 19th century. ...
Italian Model: ...
France Model: ...
Japanese Model: ...
Indian Model:
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Answer: BEST CORPORATE GOVERNANCE MODEL ACCORDING TO MY UNDERSTANDING:-
Explanation:
As corporate business is generally managed by the Board of Directors and the board members are elected by shareholders, there are certain models of corporate governance that the company can follow to maintain transparency towards its stakeholders.
There are widely three models of corporate governance and social responsibility. Namely - Anglo American model, Japanese model and German Model. There is Indian model as well, which is a mixture of Anglo and German model.
Talking about the Indian market, there are mainly three types of companies that operate, private companies, public companies and public sector undertakings. These companies have specific shareholding patters and thus, require specific understanding. The Indian model of corporate governance thus suits them the best. It is primarily a mix of Anglo-American and German models of corporate governance.
Under the Anglo-American Model of corporate governance, the shareholders’ rights are recognized and given importance. Whereas, under the German model of corporate governance, the workers are considered the key stakeholders in the company and can have the right to participate in the management of the company.
CONCLUSION:- According to my understanding, "Indian Model " is the most suitable/best model for "Indian Market".
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