Page 121 - SBL Integrated Workbook STUDENT 2018

The board of directors

Board structures

Board
structure

Two-tier
Unitary Board Board

Executive NEDs Management Supervisory
Directors 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.

115