Some bureaucracy is worthwhile if it performs an important function and adds value.
A corporate monitor would provide a link to enable shareowners to influence the management of their firm. The sizable premium often paid when a company gets taken over and its management overhauled gives a measure of the value this can add. If simplifying the firm's power structure is important enough, one bureaucratic layer could be eliminated by giving the monitor more direct control over the board of directors, as described in The Corporate Monitoring Firm . Then there would be no director elections, just monitor elections. Back to question list 2 .