The UK Corporate Governance Code - Coursework Example

Comments (1) Cite this document
The intention of this study is the UK Corporate Governance Code, which was previously known as the Combined Code on Corporate Governance or The Code. It is the foremost set of principles that are applicable to all the UK listed companies. …
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER97.1% of users find it useful
The UK Corporate Governance Code
Read TextPreview

Extract of sample "The UK Corporate Governance Code"

Download file to see previous pages From the research it can be comprehended that corporate governance is the system by which companies are directed and controlled. Boards of directors are responsible for the governance of their companies. The shareholders’ role in governance is to appoint the directors and the auditors and to satisfy themselves that an appropriate governance structure is in place. The responsibilities of the board include setting the company’s strategic aims, providing the leadership to put them into effect, supervising the management of the business and reporting to shareholders on their stewardship. The board’s actions are subject to laws, regulations and the shareholders in general meeting. The Code guides the board towards more effective practice. Its underlying principles are all those of good governance, they include accountability, transparency, probity and focus on the steady success of an entity over long term. The code is continuously changing to incorporate the alterations in the socio-economic environment. It has been reviewed in 2005, 2007 and 2010 in the recent past. The new code applies to the accounting periods beginning on or after 29 June 2010 and is applied to all the companies whether they are incorporated in UK or not. The approach that is followed since the beginning of the Code is to comply with it or explain why it is not being followed. It is referred to as “Comply or Explain”. ...
According to the latest report on UK Corporate Governance Code by the FRC, the main principles for The Code are: Leadership. The board should be led by an effectively. The responsibility of heading the board by the Non-executive directors and the responsibility of heading the company’s operations by the executive directors should be equally divided. The Chairman is the head of the board as a whole whereas the executive directors are also led by the Chief Executive Officer (CEO) of the Company. The Chairman is responsible for the effective functionality of the board. He is responsible for ensuring the clear and efficient flow of information between the shareholders and the board. As per new reforms passed in 2011, female directors will also be introduced into the board structure (FRC, Consultation Document 2011). The board of directors has the power to hire fire and compensate senior management. Their purpose is to resolve the issues, specially relating to conflicts of interests, between the decision makers and the risk bearers. Their control resolves the issue of high agency costs and facilitates the existence of an open corporation. Recent economic theory implies that the balanced structure of the board of directors is a crucial part of good governance (Baysinger, Butler, 1985). According to agency theory, shareholders interests are better protected if there is segregation between the duties of CEO and the Chairman. Where as, stewardship theory argues that the shareholders interests are maximized if both the roles are entitled to the same person. According to the author, a few test results show that stewardship theory is supported more than the agent theory (Donaldson, Davis 1991). ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“The UK Corporate Governance Code Coursework Example | Topics and Well Written Essays - 2750 words”, n.d.)
Retrieved from
(The UK Corporate Governance Code Coursework Example | Topics and Well Written Essays - 2750 Words)
“The UK Corporate Governance Code Coursework Example | Topics and Well Written Essays - 2750 Words”, n.d.
  • Cited: 0 times
Comments (1)
Click to create a comment or rate a document
longaylord added comment 7 months ago
Student rated this paper as
This paper saved me today. I liked the structure. It was very useful for my business course.

CHECK THESE SAMPLES OF The UK Corporate Governance Code

Corporate Governance in UK

...with competence, in good faith, and strong loyalty to the organisation. If the voting mechanisms seem to be inadequate to meet the interests of shareholders, directors’ rights may be questioned in a court of law. The UK Takeover Code protects the interests and rights of shareholders to a great extent and assists them to freely trade their shares (European Corporate Group, 2010). According to the corporate governance framework, every company is established as a separate legal person and this practice channels the rights and duties of all mangers and investors. This concept clearly defines various management levels and distributes duties and...
6 Pages(1500 words)Assignment

The development of corporate governance code in UK since 1992

...?Corporate governance Contents Corporate governance Contents 2 Introduction 3 Corporate Governance Development 4 Corporate Governance Practices 8 Application of Corporate Governance Codes in Burberry and BP 9 Recommendation and Conclusion 11 Reference 12 Introduction This project aims to evaluate the development of corporate governance code in UK since 1992. The motive behind the study of corporate governance stems from the fact that...
16 Pages(4000 words)Essay

UK Corporate Governance Code

...?Contents Contents Introduction 2 UK Corporate Governance 2 UK Combined on Corporate Governance 4 Discussion 7 Conclusion 8 Bibliography 9 Introduction There has been a gradual evolution of business dynamics from government and state sponsored businesses and industries to individual powerhouses dominating the field till the later part of the 20th century. However, the business system that has been dominant for the last 40 years or so has been that of the shareholder – centric approach. As a result, the board of directors of a company, which is the ultimate decision making authority of a company, has been forced to become more accountable to the shareholders. However, the present Combined Code on Corporate Governance has been more... of a...
7 Pages(1750 words)Essay

UK Corporate Governance Law

..., the board should provide them with detailed biographical information about each candidate, the reasons for nomination by the board, and the evaluation of service of the candidate to the company, so that the shareholders can make an informed decision (FRC 2010: 33). This flow of information between the board and the shareholders should be maintained so that there is transparency in the business, to the best interest of the company. Bibliography FRC. June 2010. The UK Corporate Governance Code. [Online]. FRC. Available: [9 April 2012].... ?Harris Kamran Corporate Law Analysis 9 April UK Corporate Governance Law The...
3 Pages(750 words)Essay


...? Development of the U.K. of Corporate Governance Introduction Corporate governance explores the connections and responsibilities between the board, management, shareholders, and pertinent stakeholders within a legal and regulatory framework. Sir Adrian Cadbury highlighted the principle of corporate governance as the equilibrium between economic and social goals; between individual and communal objectives (Mallin 2011, p.3). The UK corporate system can be regarded as a three-party system (comprising of directors, shareholders, and the auditors) that is principle based rather than rule based. The paper...
8 Pages(2000 words)Essay

Identify how a UK company could convince shareholders and the regulator that it had complied with the five main principles of the UK Corporate Governance Code

...Identify how a UK company could convince shareholders and the regulator that it had complied with the five main principles of the UK Corporate Governance Code. The UK Corporate Governance Code was conceived and written by the Financial Reporting Council. The Code is part of a set of Listing Rules mandated by the Financial Services Authority of UK. The Code governs transparency and accountability standards for companies listed in the London Stock Exchange. In essence, the Code is a set of guidelines (not mandatory rules) aimed at achieving good corporate governance standards in the UK. The first principle of the Code pertains to the role of non-executive directors in a company. It states that the appointments committee should... in the...
2 Pages(500 words)Essay

Corporate governance in the uk

...Corporate Governance in the UK Table of Contents Table of Contents 2 Introduction 3 Part 3 Part 2 6 Part 3 8 Reference 11 Introduction Corporate governance practices of the UK banks were governed by various international and domestic institutions, such as Financial Services Authority, Financial Reporting Council and Basel Committee on Banking Supervision, prior to the crisis. Although many of the corporate governance codes were developed on the basis of the Cadbury report and the Greenbury report during 1990’s and early 2000’s, these codes were not sufficient to prevent banking crisis in the UK. Therefore, it can be inferred that failure of corporate governance policies of banking sector in the UK was partially responsible... associated with...
8 Pages(2000 words)Coursework

The UK Corporate Governance code should be codified and placed in the Companies Act

...Lecturer’s UK Coroporate Governance History and Background Looking back almost 30 years ago, the word governance was barely used and now it is used in most if not all institutions. It describes how an organisation is run with a lot of emphasis being laid on accountability and integrity. The ‘governance revolution’ can be said to have started in the early 1990s with a report from Sir Adrian Cadbury who focused on the financial aspects of corporate governance, and thus produced a two-page code of some of the best practices. It was then dubbed the ‘Cadbury Code’ and it basically looked at...
5 Pages(1250 words)Essay

Are non-executive directors capable of fulfilling the role given to them in the UK Corporate Governance Code

...Are Non-Executive Directors Capable Of Fulfilling The Role Given To Them In The UK Corporate Governance Are Non-Executive Directors Capable Of Fulfilling The Role Given To Them In The UK Corporate Governance Code? The definition of non executive directors can be understood by a closer look at their roles and responsibilities in UK companies. Essentially the role of a non executive director is to provide creative contribution to the board of directors of a particular company. Non executive directors should be able to bring an independent judgment on issues that touch on strategy, performance, resource utilization, appointment of persons to key positions and standards of conduct in their respective companies. Due to lack of a legal... they...
5 Pages(1250 words)Essay

The UK Corporate Governance Code operates on a comply or explain basis. You are required to discuss whether this leads to better disclosure or allows companies to operate in any way they choose

...Business Ethics and Corporate Governance BUSINESS ETHICS AND CORPORATE GOVERNANCE All businesses are at liberty to run their operations the way they deem fit. Responsible businesspersons will take, in mind fundamental issues, to avoid unacceptable activities and practices, which are likely to degrade people and their surroundings. On the other hand, corporate governance entails a set of rules, which elaborate the relationship between the management stakeholders and shareholders. Good governance leads to business growth and development; these are ethical issues. This research paper is going to report the various ethical issues and corporate governance. There are three main principles of ethics in an organization, which are namely... ;...
3 Pages(750 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Coursework on topic The UK Corporate Governance Code for FREE!

Contact Us