Which Could be the Ground for Choosing One-tier or Two-tire Corporate Governance System

Abstract

Recent changes enacted in the Slovenian Company Code opened the possibility for applying the one-tier corporate governance model instead of the two-tiers one. Thedecisionon the chosen governance model must be based on an analysis of factors that determine the efficiency of each of the two models.The article offers on the basis of historical over view of the corporate governance function development and recent controversial views on the corporate governance the analysis of factors that support the one-tier governance model on one hand and the two-tiers model on the other hand. This analysis is based on the identification of the weaknesses of the corporate governance models in companies with the dispersed ownership in the transitional countries of Central Europe too. In the conclusion the author identifiesadditionallymost probable future changes in the corporate governance function.