two-tier board(redirected from 2-Tier Board)
two-tier boarda structure of the BOARD OF DIRECTORS of a company used in certain European countries, such as Germany and Norway, that comprises two tiers:
- a supervisory board, on which representatives of workers and management board are represented;
- a management board that is concerned with the day-to-day running of the business.
The supervisory board is responsible for formulating general policy and the management board with implementing policy. Two-tier boards have gained in popularity in Europe over the past two decades, compared with the UK and US style of unitary boards, and their development has been encouraged by the EUROPEAN UNION. See also WORKER PARTICIPATION.