A clearly established corporate governance structure can promote fairness and transparency, which helps your business to build solid relations with its shareholders as well as the local community. It helps define roles, guarantees accountability, and ensures compliance with laws and regulations. It also helps a business’s long-term growth strategy through aligning the interests of shareholders with the interests of the board and management.
There are many different types of corporate governance, however the one that’s right for you will depend on the company’s goals and its culture. Some of the most important published here about SaaS Companies Acquisitions concepts to keep in mind are:
Unitary Board Structure
In this model of corporate governance the board of directors is accountable for making decisions and directing the company’s activities. The board comprises executive and non-executive directors. This type of structure is common in small and mid-sized companies.
Continental Model
Continental’s two-tiered structure is a structure that gives control to a supervisory board and an oversight panel. The management board consists of insiders in the company like managers and executives. The supervisory board is made up of outsiders, such as union representatives and bankers with stakes in the company.
Governance that is stakeholder-oriented
This type of governance structure, in contrast to traditional structures, which place emphasis on shareholder interests, is a holistic approach that considers all stakeholders including employees, vendors and customers in addition to the community. It encourages boards to create engaging programs that are meaningful and adopt policies that reflect broader environmental and social issues. The board should be transparent about the process of making decisions and communicate that information to all stakeholders. It is also important to ensure that there are clear lines of communication between the board, company management and shareholders.