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A Dual Board or Two Tier system is a corporate structure system that consists of two separate Boards of directors that work together in order to govern a business. The structure is composed of two boards, the "Management Board", and the "Supervisory Board" each of these serves a particular purpose. The Dual Board system is prescribed by law in countries such as Germany. Here the "German Corporate Governance Code" prescribes that businesses which are quoted in the stock market such as Lufthansa, and Adidas must apply the Dual Board system. This is the case due to its more sustainable management which tends to have a better compliance to the social market system.〔(【引用サイトリンク】title=German corporate governance code )〕 According to Stanford University using a two tier system also results in "more monitoring", "less aggressive performance targets", and dissemination of power by not allowing the CEO to be chairman. On the other hand it is considered to be "less efficient" from a market point of view. The lack efficiency arises from the potential lack of communication, and the higher costs of running a Dual Board. ==History== The dual board system was first adopted in German companies in the 19th century, and it become compulsory after the Second World War.〔Proctor, Miles (2002). Corporate Governance. Cavendish publishing. ISBN 1859416519〕〔WÜRDINGER, H. and PENNIGTON, R., R., German company law, London, Oyez publishing, 1975, 37-38 Xiii + 249. 〕 Other countries that adopted this method include Finland, China, and the Netherlands. In addition to that the Singapore Manufacturing Federation, only recently decided to introduce a supervisory board as well. In the European Union there are 10 countries using the two-tier system as opposed to 8 countries using the regular board. The other 9 countries use an amalgamation of both. As of today most countries are moving towards a more managed corporate structure which tends to resemble the dual board system another example are The United States here the number of outside directors is increasing.〔Sarra,j (2011). Corporate Governance in Global Capital Markets. UBC Press. ISBN 0774810041〕 抄文引用元・出典: フリー百科事典『 ウィキペディア（Wikipedia）』 ■ウィキペディアで「Dual board」の詳細全文を読む スポンサード リンク
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