Please choose either Question 1 or Question 2.
1. A central issue in corporate governance is the agency problem
between management (agent) and shareholders (principal).
Critically discuss the principal-agent problems and the various
mechanisms that can be used to potentially mitigate them.
2. Some scholars hold the view that corporate governance
models around the world are converging on the shareholderoriented system most commonly practised in the US and UK.
Others disagree and talk of continued divergence especially
between the shareholder-oriented and the stakeholder-oriented
models. Using appropriate examples, critically discuss these
views.