Changes in management role in the corporate governance system : example of Montenegro

The breakdown of the management system on a global scale, after the major financial scandals, first in the US and then in Europe, has launched a debate on reviewing the position of management in the corporate governance system. Since then, a number of studies, professional papers, policy initiatives and legislative solutions have attempted to change the place and role of management in the corporate governance system. The need to improve corporate governance is not a global necessity belonging to the developed countries; it is also inherent in developing countries. During the global crisis, the role of management and the quality of the regulatory mechanism were re-examined at the level of the European Union. The initial hypothesis of the present paper is contained in the claim that management is one of the most important elements in the corporate governance system. Therefore, the research focus of the authors is placed on empirical, practical and regulatory analysis of the position and role of management in the corporate governance system. Analyzing the changes in the position of management on the global, European and Montenegrin transition experience, the authors strive to prove the hypothesis that the lack of understanding of the position of management and its inadequate regulation have significantly influenced the current situation in the Montenegrin economy.