Corporate governance is the complicated system of corporation management and is based on the relation of shareholders and managers of a corporation, including the board of directors and other interested people who help shareholders protect their rights. Moreover, corporate governance is the system of methods and mechanisms which help shareholders control the activity of the corporation and solve various problems which can occur there. Corporate governance is not limited by the bounds of joint-stock communities and functions in the corporations which possess different structure. It is obvious that the core condition of corporate governance is the hierarchic management structure, where all the managers of the lower rank are controlled by the managers of the higher level.
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Evidently, corporate governance is not connected with the operational management and the tactics of the management of a company but it has definitely become a part of the strategic governance. Corporate governance is aimed at the control over the activity and decision making of the company. Because of its complicated structure corporate governance is a controversial phenomenon, because it tries to satisfy the interests of both sides: the directors of the company and its shareholders, who think only about profit.
There are two different models of corporate governance which point out the most influential bodies in the activity of a company. The Anglo-American model gives the majority of rights to the shareholders who control the activity of the corporation through the capital market. The Continental model of governance gives more rights in decision making and control to the board of directors of the company.
Every future expert in business and management should be aware about the structure and key points of corporate governance. When a student has become interested in the problem of corporate governance, he can try to complete a successful research proposal on the topic and win the opportunity to write a research paper on it later. In order to complete a good corporate governance research proposal one should focus on the logical structure and up-to-date content of the paper. A student is expected to persuade the professor that the topic is relevant and worth attention. One should find the most thought-provoking questions in order to prove that the topic is worthy and the research can contribute into the development of the discipline.
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