Corporate Governance Regulations across Specific Countries � A Theoretical Examination

Abstract

The diverse system of corporate governance in some of the developed and the developing countries around the world has been studied. In most of the countries, the committees that are present in common are: audit committee, compensation and nominating committees. Boards are unitary in nature in the United States and in the United Kingdom. Establishment of remuneration committee became active after being insisted in Greenbury report in the U.K. There is either a unitary system of governance or two tier systems with the management committee and the supervisory committee. Two tier board structure has been followed in most of the firms in Germany. In Hong Kong there is an outsider system of governance with an insider mould. Family ownership is predominant in Hong Kong. Malaysian system of governance is insider-oriented and is controlled by the founding families. Board structure is one tier in nature. Governance code recommends a board with only independent directors in Malaysia especially nominating committee. India has a one tier board structure. Significant differences persist in the corporate governance practices of countries studied in this research paper.