Abstract
Corporate governance refers to the way in which a company is being organized, and contains laws, regulations, principles and codes which the organization is based on and guided by. Two primary systems of corporate management can be differentiated: the monistic model (one-tiered) which originates from and is used in the United Kingdom, USA and Canada, and the dual model (two-tiered) that is mostly implemented in the countries of Western Europe, and more recently in European countries in transition. This study will be dealing with the two-tier system of corporate governance, as well as the differences and similarities in its application in Europe through the course of challenging and unstable business conditions. The supervisory board as a management body is a control body that supervises, directs and controls the work of the executive board. Certain factors such as the size of the board, independence, composition and diversity of the supervisory board are considered crucial for successfully fulfilling its role. The contemporary approach to business encourages the constant need to review and redefine the role of supervisory boards and search for solutions that would contribute to efficient corporate governance.
Publisher
University of Belgrade, Technical Faculty in Bor
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