In this chapter, one of the unique features with the Swedish governance system is dis-cussed, namely the large presence of controlling owners and the frequent usage of so-called control-enhancing mechanisms (CEMs), i.e., control devices that allows separation of ownership and control. The chapter is divided into four sections, where Section 1presents a theoretical background to agency conflicts in firms with concentrated ownership. Section 2 continues with defining commonly applied CEMs and provides data on the usage of CEMs in Sweden and other European countries. Section 3 reviews accounting-and finance-oriented research studies with evidence on the effects of CEMs in Sweden. Last, Section 4 discusses the challenges with an EU-level corporate governance system.