CORPORATE MANAGEMENT AND SUPERVISION
Journal Title: Acta Economica - Year 2005, Vol 3, Issue 3
Abstract
By growing of pre-industrial society into industrial practice imposed necessity of changes regarding institutional frame related to organizational form of joining of capital. It is about scope of institutional arrangements that are directly and indirectly related to rules and procedures of founding of stock company as typical organizational form of association of capital and on that form of organization of the enterprise, i.e. company. This results in new in new needs for finding and upgrading of model and process that are related to transfer of authorities, organizational structure of corporate governance, internal and external control of work regarding competent persons and organs of governing corporate structure, liability of companies to the public, etc. Following is the need of emphasizing of coordinated principles of corporate governance and upgrading of system of control. Also there is increase of requests for model and mechanisms of increase regarding level of security of key investors with proper protection of interest of small shareholders and other interested participants. Rules of game related stock company and specially activities that all under corporate governance are becoming increasingly important due to process of globalization. Process of globalization has spread especially after destruction of ideologies and practice of proclaimed socialist countries. At the same time, with need for political pluralism, universal need for change of property form - privatization of state capital in enterprises is rising. This produces brand new owners of existing enterprises companies, as well as new forms of capital joining, investing and governing, which, like a shadow, follow private property. From the aforementioned novelties complex processes and alternative modes of governing companies are rising especially with different models and mechanisms of work control of authorized persons and organs, as well as different possibilities of reporting. What directly depends on principles and models of corporate governance is the following: business result of the company, real value of nominal share of shareholders, i.e. effecting of interests of investors and other interested participants. Corporate governance is s synonym for large business system, i.e. the company with intention to grow big. Large business systems have special, unavoidable role and importance for economy and society of every state. Therefore, system of corporate governance and supervision becomes important precondition for successfulness of companies and indirectly one of pillars of economical and social development.
Authors and Affiliations
Borislav Bijelić, MSc
Keywords
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