In the Czech republic, the former government introduced a method of mass privatization which involves the distribution of coupons to the population. These coupons can be used to bid on or be exchanged for shares in either the privatized enterprises or in investment funds. In this process, the investment funds, which were established mainly by the four biggest banks, attracted a majority of the coupons. However, as the government still maintains a major shareholding in these banks, a unique share ownership structure has emerged in the Czech Republic. Concerning corporate governance, the former government attached importance to the role of the share-holder, so American-type corporate governance, the former government attached importance to the role of the share-holder, so American-type corporate governance is widespread among privatized enterprises. However, the role and power of not only share holders but also the other stake holders are not so strong that Czech managers have not yet been forced to relinguish any real power.
