 Welcome back to the corporate governance module and we have been talking about the ethical concepts and the ethical theories which are related to corporate governance in our past sessions. Today we are going to move a little bit forward something that we touched earlier on but to talk about it in a different context when we are going to talk about the different corporate governance models today which are more based upon the context of country and community and their own predictions values assumptions and presumptions. So, that is what we are going to be looking at and we will see how this model tends to affect the organization and then what are its different implications. So, ladies and gentlemen if we tend to move forward and try to understand this corporate governance model then we can see that a model is a purposeful representation of a reality. It is a physical representation of a theory models are basis of theories while theories are the main basis for the explanation of different phenomena. So, the main basis for the explanation of different phenomena models can be used as a physical tool in the verification of theories to date several models have been identified. They are the Anglo-Saxon model, the Japanese model and the German model. So, ladies and gentlemen we are going to be looking at these three models as we tend to move forward. So, going a little bit more forward we look at the Anglo-Saxon model and the assumptions of this model are as follows. Share owners are individuals and increasingly institutional. Investors are not affiliated with the corporation they basically known as outside shareholders or outsiders. A well-developed legal framework defining the rights and responsibilities of the three key players namely the management, the directors and the shareholders. So, in this particular model we are seeing that there is a distinction between the management, the directors and the shareholders and most importantly there is a well established and well framed framework which ensures that the roles and responsibilities are properly defined and most increasingly what we see is that the investors are called outsiders because they are not insiders and this is what we see in large corporations. So, ladies and gentlemen when we are talking about this model the assumptions of the models are a simple procedure for interaction between the shareholder and the corporation, equity financing, a free market economy, the separation of ownership and control in most publicly held corporations the interest of shareholders and management may not always coincide. So, ladies and gentlemen what we see is that in this particular model again we see that there can be conflicting needs, interests and again desires, needs and wants and secondly what we see is that this tends to flourish in a free market economy and there is equity financing and most importantly what we see is that there is a separation of ownership and control in most publicly held corporations and therefore the management is separate and the board is separate and both have different responsibilities the board is more strategic while what we see is that the management is more tactical in its different workings. Now, looking at the different features then the composition of the board of directors basically has a mix and is an inclusion of both insiders and outsiders the regulatory framework laws and regulatory codes defined relationships among management directors and shareholders regulatory agencies such as the Securities Exchange Commission of Pakistan strictly establish disclosure requirements for corporations and most comprehensive and stringent disclosure requirements. So, what we see is that the regulatory framework is also depending upon the dimension of disclosure. So, if there is no disclosure then there is no corporate governance and it is very important to understand that there is a defined code for the relationships which exist between the management the directors and the different shareholders and again based upon this model we see that there are very stringent frameworks and they are very complex models which ensure that this model can ensure corporate governance within institutions. And moving a little bit more forward we see that corporate actions requiring shareholder approval, elections of directors and appointment of auditors, submission of proposals to be included in the agenda of the annual general meeting, there is interaction among players, exercise of voting rights without attending the annual general meeting in person, receiving of the agenda for the meeting by email including all background information in all proposals the corporations annual report and voting card. So, ladies and gentlemen when we look at the Anglo-Saxon model then we see that it is a colossum of these different intricacies and different webs of relationship between each other the element of disclosure, the element of audit and also the element of cross responsibility which makes it a very formidable model. And again this model is being followed by the Securities Exchange Commission of Pakistan even in Pakistan and most organizations within Pakistan are streamlined towards this particular model. Thank you so much.