As mention that the Anglo-Saxon legal system tends to focus more on the firm
as a legal entity and relationship and because the government can enact the law to
protect other stakeholder’s interest but the shareholders interest, which is the
dividend, can only achieve only by the good management decision protected by
company law to prevent the management to misusing their power. This is the
difference between Anglo-Saxon and many other governance systems that other
governance system, other stakeholders’ interest is considered to be part of the
management decision. For instance, Anglo-American corporate governance system
usually doesn’t concern much about to lay off their employee where in Germany, the
employee representative is required by law to sit on the board therefore to lay off the
employee would be difficult for the board to make such decision