Role of supervisory board in corporate governance of companies in Serbia

Abstract

Supervisory board as managing authority is characteristic of the continental model of corporate governance and has three basic roles - strategic, controlling and interconnected. Some of factors that are considered crucial for the successful realization of supervisory board’s roles are size of the board, independence, composition, diversity, realization of the same function of members in several companies, etc. However, it is noted that states apply different rules regarding the organization and functioning of the supervisory board, which also affects roles of the supervisory board. In this paper, we will try to show that all aforementioned supervisory board’s roles are manifested in supervisory boards of joint-stock companies in Serbia. We expect that using results of the conducted research, we will confirm that supervisory boards in joint-stock companies in Serbia operate in accordance with the laws and good business practice.

Keywords

• supervisory board
• corporate governance
• joint-stock companies in serbia