Corporate Governance in Spain

CORPORATE GOVERNANCE

Faculty of Economics

VSB - Technical University of Ostrava

Ostrava, 17 OF DECEMBER 2.009

INDEX

1Introduction 3

2General characteristics of Corporate Governance in Spain 4

3Corporate board (structure and composition) 5

4Ownership structure (man groups of owners) 7

5Role of capital market and banks 8

6Conclusion 10

7References 11

1INTRODUCTION

In this test we are going to speak on the model of the Corporative Governance in Spain. We will see the characteristics of the Spanish system and their structure. After that one, we will speak of whom leads the property of the companies in this country, that is to say, which are the main groups of the owners who compose the structure of the property of companies in Spain.

The issue of corporate governance is created with the idea of the modern enterprise. It was initially identified with the delegation of power over decision making to managers than the owners. Both Adam Smith (1776) and Berle and Means (1932) expressed reservations about the viability of such firms. Smith, referring to the stock companies, describes a typical conflict of agency: "From the directors of such companies, however, with other money managers and not their own, can not be expected to monitor them with the same anxious diligence with which the partners in a private company frequently watch their own.. " Berle and Means, and point to a diffuse ownership structure, to express their doubts about an effective control over managers.

But traditionally, the countries have been classified in two groups in base of the direction of the financial system: the insider or bank oriented system and the outsider or market oriented system. The first one is more spread in the continental Europe, while