CIMA BA4 Syllabus B. CORPORATE GOVERNANCE - Board Structures - Notes ^{1 / 7}

Unitary Board Structure

The UK and USA adopt unitary board structures. 

This generally consists of one board that comprises of both executive and non-executive directors. 

However, the unitary board can comprise of an all executive board, a majority executive board or a majority non-executive board.

Two Tier Board Structure

Germany and some companies in France adopt two-tier board structures. 

In this structure, there is NO implied involvement of non executive directors in the running of the company. 

The two-tier board structure consists of:

Management Board - their major role is to run the the company.  
Supervisory Board - their role is to safeguard the interests of stakeholders.