Codetermination: The Necessary Presence of Workers on the Board. A Mathematical Model

Donato Forcillo
2017 Social Science Research Network  
We analyse in a firm the possible choice between two systems of corporate governance: the one-tier board, a structure commonly used in the Anglo-American world, and the system of Codetermination, a two-tier board with the presence of workers' representatives in the supervisory board, a model commonly adopted by firms in Germany. The aim is to fill a gap present in the current literature, the absence of a mathematical model that explains how works the governance's system of Codetermination
more » ... determination presents not only in the German world, but expanding in many other European countries, as a result of the recent EU directives, which emphasize the need to involve workers in company decisions.
doi:10.2139/ssrn.3055610 fatcat:yhiszce44zecdbiqgrpoqa4lge