When a compound board is created within a firm it represents a network of information processing and control centres. Networks can then exist both on a intra-firm basis and on an inter-firm exist together in Mondragon and both types of networks need investigating to understand how they may best be used The ownership and control structure of firms has been extensively analysed by such scholars as Grossman& Hart(982; 1986), Hart& Moore(1990), Hart(1993 1995) and Williamson(1975; 198s). But in the traditions of US research, their work assumed organisations were centrally controlled through a unitary board.