Royal Ahold:* The Role of Corporate Governance

Royal Ahold (Koninklijke Ahold NV) was one of the major success stories in the 1990s and suffered a complete meltdown in 2003. This chapter analyzes the role of Ahold’s corporate governance mechanisms. and illustrates how initially a family, and later professional management, exploited the intent of the law and existing regulatory structures to maintain absolute control of the company. It analyzes in detail the applicable governance mechanisms of Ahold that were designed to hold the self-interest of the parties in check.