This model is applied in many countries around the world such as Australia, Canada, South Africa and some of the commonwealth countries, in addition to the United Kingdom and the United States (Scott, 1996; Weimer and Pape, 2000). Furthermore, Solomon, (2010) argued that although the narrow shareholders' approach is compatible with the theoretical framework of the stakeholder accountability approach, the interest of the shareholders' can only be fulfilled by taking account of the interest of stakeholder, and that corporations can be more profitable in the long run if they are accountable to all of their stakeholders. In the Anglo-Saxon model the ownership of the firms is separated and distributed to a large number of shareholders (Roe, 2003; Weimer and Pape, 2000). Therefore, the measurement of the company’s success in this model is the amount of profits and the return on the investment (Scott, 1996; Al-ajlan, 2005). Financial innovations potentiality weakens traditional governance processes. There is a system known as Kereitsu in the Japanese model. This narrow perspective were criticized that it fails refer to the role of stakeholders in corporate governance and their responsibilities in helping to attain corporate governance objective or the accountability of a company to a wide range of stakeholders (Du Plessis et al., 2005). (King Report, 2002). em>The principles of Good Corporate Governance are important so that performance is increasing and beneficial to the stakeholders. (2001) investigated the relationship between the presences of the NEDs and firm performance in New Zealand firms and they found that more proportion of NEDs enhanced the firm performance. For instance, Weir and Laing (2000) argued that NEDs often command less knowledge about the company and find it too difficult to understand the complexities of the company. Corporate governance is a way that a company is ordered, managed and controlled. That is the goal and role classification emerge. Thereby they could influence corporate governance mechanisms of the latter. However, accountability seems to be a key in all perceptions, but the difference among them relay to whom that accountability is discharge; Narrow definitions of corporate governance focus on corporate accountability to only shareholders, while broader definitions emphasis accountability to shareholders as well as other stakeholders (Elkelish, 2007). Nonetheless, Li, Pincus and Rego (2008) reveals that there is high abnormal stock returns connected to compliance with Sarbanes and Oxley Act (2002). While it found that corporate governance is a “ This system is based on the interaction in the relationships between the business organizations in Japan. Similarly, Solomon (2010) defined corporate governance from a wider accountability perspective to all stakeholders as: "the system of checks and balances, both internal and external to companies, which ensures that companies discharge their accountability to all their stakeholders and act in a socially responsible way in all areas of their business activity". Weimer and Pape (2000) noted that it is not allowed for the same person to be a member of both the supervisory and the executive board. It differ from one interested party to the other and this could leads to confusion. They are, for example: relatives of management, consultant to the firm; involved in other related party transactions and etc, which may impair their real and perceived independence (Beasley, 1996; Carcello and Neal, 2000). Moreover, the Japanese model relies on one-tier to manage the companies. Further, as a major downfall of the King 1, analysts identified that King 1 has not been able to align its recommendations to solve burning issues in South Africa such as empowering black community, equivalence in employment practices and environment issues that are considered vital issues in the eyes of stakeholders. in addition, Brickly et al. In commenting on the limitations of OECD principles, OECD (2004) itself identifies that principles might be practical in all the countries due differences in business, economic, political and socio-cultural environments. Based on the above definition, corporate governance is concerned of two aspects namely, factors that are internal to the company as well factors that are external to the company ensuring that it serves the interests of all the stakeholders rather than being limited to addressing the interests of shareholders only. These financial arrangements imply quite different stockholder relationships, and by corollary governance structures, from the conventional model since depositors have a direct financial stake in the bank’s investment and equity participations. Limitations such as on takeovers, ownership concentration, prudent supervision, etc. This model adopts the social view of the institution as it is considered as a community or a nation which must care about the interests and needs of different groups of stakeholders as well as the shareholders. In further highlighting the positives, OECD (2004) states that these principles construct the road map for a sustainable development considering interests of all the stakeholders. The UK Corporate Governance Code (2012) identifies the important role to be played by the independent non-executive directors that suggested by the Higgs Report (2003) by stating that: "Non-executive directors should constructively challenge and help develop proposals on strategy." Nicosia 1065 However, Mallin 2010, stated that , there is a lack of a separation between the functions of monitoring and management on a unitary board. A logical first reason is that a strong and adaptable banking system helps the monetary authorities to carry out monetary policy, that is, to implement decisions about money supply and interest rates. (Malherbe and Segal, 2003). A unitary board of directors system is very common in Anglo-Saxon countries such as in the UK and the US. Ultimately, the products and services [...], The financial industry has historically played an important role in the economy of every society. Whereas the 20th century might be viewed as the age of management, the early 21st century is predicted to be more focused on governance. Financial firms hold equity stakes, grant credit and, hence, examine performance, which facilitates them to make a strong impact on governance of other institutions. The Combined Code of (1998) makes it a must for companies to include a statement of compliance explaining the application of The Combined Code in company annual reports. The legislature formulates the laws, the executive (including political and permanent) implements the laws, while the judiciary interprets the laws. Thus, various definitions have been provided to define the term ‘corporate governance’ where most of the definitions reflect different points of view. (P.78), The following sub-sections discuss different aspects related to the board of directors such as types of board of directors, board composition, board sub-committees. 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