Anglo-Saxon Corporate Governance System: The unitary board of directors is
the statutory norm for American and UK corporations (Pinto, p. 261). In the United
States, America runs by federal system1
(Pinto & Vesentini, 1998, p.255). Federal law
is enacted by the congress where state law is enacted by state legislation. Each state
has its own law and legal system in which corporate laws in different state provide
different rule and regulation. Nevertheless, most of the state statue does not
significantly different among them. However, some state may provide a greater
freedom for management to act than in other states in order to attract the incorporate
tax and fee. Therefore, in the US, even though the corporate governance system is similar among states but because of the corporate laws in different state provide
different statute and regulation, and different in court interpretation, therefore,
American corporate governance has created the differences in efficiency and
effectiveness of corporate system.