Summary

For Georgia`s political and economic integration into the Europe it`s necessary to resolve the social and economic tasks in a right manner. Corporations form one of the significant role into the said task`s decision. Thus it`s important to improve the corporate management, increase the transparency and establish the efficient mechanisms of control. The general regulations about the working out of the enterprises’ efficient management system, are made by Georgian law “about the entrepreneurs”. During the discussion of corporate management, it`s important to note the following acts: principles of corporate management worked out by organization of economic cooperation and development on 1999 year and the EU action plan about modernization of corporate law and corporate management improvement.

There are two main models of corporate management: Anglo-American, which is spread in the UK, USA, Australia, India, Ireland, Canada, etc. and German model, which is typical to west and north Europe. It is also used by some companies of France and Belgium. The Anglo-American model is characterized with the property, that in it, the most of shareholders have no liabilities towards the corporation. The banks are prohibited from owning the shares of industrial corporations. The corporation`s interests are identical as its shareholders` interests. The management`s said model is characterized with two-stage structure. The German model foresees to allow all the parties (interested in corporative management process) to take part. The said model has effective internal control. It has three-staged management structure and its bankruptcy and conflicts risks are low. By characterizing the mentioned management models and revealing their pros and cons and with sharing the best international practice, the Georgian corporations will be able to solve efficiently the practical issues.