Editing Dual board (section)

[[File:Dual Board Diagramm.jpg|thumb|right|Visual representation of a Dual Board system]]
A '''Dual Board''' or '''Two Tier''' system is a [[corporate structure]] system that consists of two bodies i.e. the [[Committee|Council of Delegate]]s to govern the [[Boards of directors|Board of Director]]s and the [[Boards of directors|Board of Director]]s to manage a corporation. The roles and relationships between the two bodies vary across countries. The structure is composed of two bodies, one focused on management and the other on governance.<ref>{{cite journal |last1=Yeh |first1=Chien Mu |last2=Taylor |first2=Tracy |last3=Hoye |first3=Russell |title=Board roles in organisations with a dual board system: Empirical evidence from Taiwanese nonprofit sport organisations |journal=Sport Management Review |date=1 April 2009 |volume=12 |issue=2 |pages=91–100 |doi=10.1016/j.smr.2008.12.001|hdl=10453/10243 |hdl-access=free }}</ref>

In Germany, the '''Dual Board''' system is prescribed for corporations that are listed on the stock market (e.g., [[Lufthansa]], and [[Adidas]]). It is argued that this approach better serves the objectives of a social market system.<ref name="Corporate governance">{{cite web|last1=Government Commission|title=German corporate governance code|url=http://www.dcgk.de//files/dcgk/usercontent/en/download/code/E-CorpGov_2014.pdf|accessdate=26 November 2014|archive-url=https://web.archive.org/web/20150528064128/http://www.dcgk.de/files/dcgk/usercontent/en/download/code/E-CorpGov_2014.pdf|archive-date=28 May 2015|url-status=dead}}</ref>

Using a two tier system might also result in "more monitoring" and "less aggressive performance targets". It might also be "less efficient" from a financial market perspective.<ref name="Corporate board structure">{{cite web|last1=Carrasco|first1=Vinicius|title=Corporate Board Structure, Managerial Self-Dealing, and Common Agency|url=https://web.stanford.edu/group/siepr/cgi-bin/siepr/?q=system/files/shared/pubs/papers/pdf/04-15.pdf|accessdate=26 October 2014}}</ref> It has been suggested that financial efficiency may be impeded by reduced communication, and the higher costs of running a Dual Board.<ref name="A Handbook of Corporate">{{cite web|last1=Aras, Crowther|first1=Güler, David|title=A Handbook of Corporate Governance and Social Responsibility|url=http://www.ashgate.com/pdf/SamplePages/Handbook_Corporate_Governance_Social_Responsibility_Ch10.pdf|accessdate=26 October 2014}}</ref>