Introduction

In Chapter 12 we discussed corporate governance in the USA, the UK and Canada. We have mentioned that although they are considered to be the major traditional Anglo-American corporate governance jurisdictions, there are among them some fundamental differences in approach.

In this chapter the focus is on the OECD principles of corporate governance, and corporate governance in Germany, Japan and China. The OECD principles cover board structures. Germany adheres to a two-tier board structure with employee representatives forming part of the supervisory board. Elements of the German corporate governance model influenced the original Japanese corporate governance model, but Anglo-American influence emerged after World War II. China has a unique corporate governance model because Chinese corporations were traditionallyare state-owned and many major corporations are still either state-owned or state-controlled. Nevertheless, elements of both the German model and the Anglo-American model, especially as far as independent, non-executive directors for listed companies are concerned, have influenced the Chinese corporate governance model.

OECD Principles of Corporate Governance

Background

The Organisation for Economic Co-operation and Development (OECD) consists of a group of 30 member countries who share a commitment to democratic government and a market economy. It shares expertise and exchanges views with more than 100 other countries, non-government organisations and civil societies.