Submitted to:- Submitted By:-

Aman Mam Mahima Wadhwa

(5833)
 France ,officially known as the French
Republic,is one of the main powers
,economically as well as politically,not only in
Europe but also in the entire world.
 France is the fifth largest economy in the
world
 has a GDP of a staggering $2490 billion
 ideal destination for investors
 Free trade and large market size
 Main focus-increase the flow of
foreign investment.
 2nd largest market in entire Europe
 Not only scope in R&D, automative
and construction and bio technology
but also in research in green &clean
technologies.
 Studies relation b/w mng of co., BOD.,
shareholders and other stakeholders
 During the last 30 yrs , the govt. has
undergone profound transformations- &its
features appear similar to Anglo-Saxon Model
 Minority shareholder activism is modest, even
though their rights have been strengthened
 An annual report is being published on
corporate governance,executive
compensation and internal control
 A high committee on corporate governance
has been constituted which is mainly
responsible for monitoring compliance with
the principles
 The “comply or explain” principle is to be re-
inforced
 The restrictions on the number of offices for
executive directors to two
 Formal commitment required of directors not
to use any hedging instrument
Anglo American German Japanese

Share holders Shareholders and Shareholders and

employees /unions banks

Elects Elects Elects

Board of Directors Supervisory Board Supervisory Board

appoints President
And President
Appoints Appoints Appoints

Officers/Executive Management Board Executive Board

Manage Manage
Manage

Company Company Company

Indian Model = Anglo American Model +German Model

 Changing Ownership Structure
 Wide Spread of Shareholders
 Corporate Scams or Scandals
 Greater Expectations of Society of the
Corporate Sector
 Hostile Take-Overs
 Huge Increase in Top Management
Compensation
 Globalisation
 Transparency
 Accountability
 Independence
 Why Governance Matters
 Acquisition of production capability
 Market access
 Distribution of Gains