Corporate governance Essay Example | Topics and Well Written Essays - 1000 words - 2

Corporate governance - Essay ExampleAll executive board refers to a unitary board structure whose directors are employees of the company. It is in general popular among the privates and subsidiary companies in the United Kingdom. Executive board members are well versed with operations of the company and are more furnish with information about the company hence they can make better decisions. All executive board is criticized for non-effective corporate governance because the board performs both the charge and governance roles. Majority executive board refers to the unitary board structure whose most board members are drawn from employees of the company and the remaining nonage (outsiders) chosen outside the company. It is more effective in promoting effective corporate governance as compared to solely executive board. However, when voting is done, the decisions of the majority (executive members) wins thus board mental ability to undertake thorough outside monitoring is undermine d. Executive directors are companys employees operating under a contract serve while the non-executive directors keep in line under the contract of service. Majority non-executive board refers to a unitary board structure whose members are largely drawn from outside the company and the remaining minority (executive) members are drawn from the employees of the company. This is considered most effective unitary board structure that contributes to the effective corporate governance because majority (non executive) directors are concerned with companys governance. However, outsiders may lack adequate information about the company because they do not have day to day contact with companys operations (Macey, 2008, p. 55). On the other hand, Solomon (2007, p.78) said Two-Tier Board Structure refers to a board structure with two separate boards. One board is called management board and it comprises all executives. It is headed by the chief executive officer and