In the era of managerial governance, laws
are passed and codes are written that favour
the separation of ownership and managerial
control: for example, securities laws concerning
the obligation of disclosure in the US, 1933
and 1934; company laws making a board of
directors compulsory in France, 1940 and
1943; and laws establishing the two-tier board
in Germany, 1947 and 1957. With this type of
legislation in place, corporate governance
takes on many of the practices of political democracy.