Page 40 - Microsoft Word - 00 P1 IW Prelims.docx
P. 40

Chapter 3





                            Board structures






                                                        Board
                                                      structure




                                                                              Two – tier
                               Unitary Board
                                                                                Board



                     Executive                                    Management              Supervisory
                     Directors                NED’s                  Board                   Board



               2.1 Two-tier boards

                    predominantly associated with France and Germany

               There are two main reasons for their existence e.g. in Germany


                                   Codetermination: the right for workers to be informed and
                                    involved in decisions that affects them.

                                   Relationships: banks have a much closer relationship with
                                    German companies than in the UK and are frequently
                                    shareholders.

               These parties (stakeholders) are actively involved in company affairs, hence the
               two-tier structure.























               34
   35   36   37   38   39   40   41   42   43   44   45