What is Governance Structure?
- Unitary Board Structure: All decision-making authority is vested in a single board, which includes executive and non-executive directors.
- Dual Board Structure: This structure separates the decision-making authority between an executive board and a supervisory board. The executive board is responsible for day-to-day operations, while the supervisory board oversees and advises the executive board.
- Committee Structure: This structure involves the formation of various committees, such as audit committees, compensation committees, and governance committees, to focus on specific areas of governance and provide recommendations to the board.
- Advisory Board Structure: An advisory board is established to provide guidance and expertise to the organization, but it does not have decision-making authority.
- Federated Structure: This structure is often used in large organizations with multiple subsidiaries or divisions. Each subsidiary or division has its own board, but there is also a central board that oversees the entire organization.
Governance structures can vary depending on the size, nature, and goals of the organization.
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