Group governance – directors with many hats

THE modern corporation has many hydra forms. Complex structures include pyramidal form, chainownership forms (popular in Asia as entrepreneurs leveraged their investments with outsider investors). There could also be network crossholdings with dominant substantial block.

Bob Tricker has observed that there are two distinct options in governance and management structure of conglomerates. One which embraces group self-governance with each company governing itself subject to overall group policies. Alternatively, group-wide governance where entities are treated as divisions or departments of holding company.