Failures of Corporate Governance in Housing Cooperatives – Case Study

Abstract

Purpose: The purpose of this paper is a discussion and in-depth analysis of the legal and organizational circumstances associated with the activities of Supervisory Boards in housing cooperatives. Methodology:A critical analysis of the existing legislation, own analytical analysis of the source documents, supplemented by conclusions and observations formulated on the basis of a case study, for the preparation of which information has been used obtained from primary sources in the form of documents of the analyzed housing cooperative and information obtained through participant observation.Findings: What has a decisive impact on the mechanisms of corporate governance in housing cooperatives are the direct behaviors of Supervisory Board members, as well as the lack of awareness and involvement of the residents, who do not want to actively participate in the life of the cooperative. A diagnosis is presented of the most important factors that infl uence the actual operations of the analyzed Supervisory Board. While the current legal regulations make it possible to ensure effective and proper control as well as adequate supervision over the activities of cooperatives. Originality:The paper enriches the theory of management sciences in terms of a wider perception of the term corporate governance in relation to other organizations than companies. The presented methodological approach that is the basis for a comprehensive and thorough inspection of the activities of the Management Board can be used in other cooperatives as well. In the literature on the subject no similar analysis, supported by the results of own analytical research, had been found.

The Effect of Corporate Governance on the Performance of a Company. Some Empirical Findings from Indonesia

“…The higher the size of a company's board of directors in a company, the better will be the company's performance through directions to specialize, increased experts and greater monitoring capacity (Klein, 2002), Dalton et al (1999). Walczak (2013) concludes that the behavior of members has a decisive impact on the mechanisms of corporate governance.…”