A well-defined corporate governance structure ensures transparency and fairness and helps your business build a strong relationship with shareholders and the public. It helps identify the roles and responsibilities, guarantees accountability and helps ensure compliance with laws and regulations. It also supports a company’s long-term growth plan by aligning the interests of shareholders with those of the board and management.
There are many kinds of corporate governance, but the one that’s right for you depends on your company’s goals and the culture of your company. Be aware of the following key concepts:
Unitary Board Structure
In this model of corporate governance the board of directors is responsible to make decisions and supervise company activities. The board is comprised of SaaS acquisitions executive and nonexecutive directors. This type of structure is typical in small to mid-sized businesses.
Continental Model
Continental’s two-tiered structure is a structure that grants control to a management board and an oversight panel. The management board is composed of insiders from the company including managers and executives. The supervisory board is comprised of outsiders, such as bankers and union representatives who have stakes in a company.
Governance that is based on stakeholder engagement
This type of governance structure, which is different from traditional structures, which place emphasis on shareholder interests, is a holistic approach that considers all stakeholders, including employees vendors and customers in addition to the community. It encourages boards of directors to adopt policies that reflect environmental and social concerns and to create meaningful engagement programs. The board should be transparent and transparent about its decision-making processes and make this information available to all parties. It must also ensure that there is a clear line of communication between the management, board members and shareholders.