Development of the Uk Code of Corporate Governance

Topics: Corporate governance, Cadbury Report, Combined Code Pages: 10 (2972 words) Published: April 15, 2013

Module title: Corporate Governance

Module code: 6BUS1005

Student name: Qiao Wang

Student number:

World account: 2348


Part I3
The Combined Code 20033
1.Cadbury Code Report–(1992) Maxwell &Polly Peck5
2.Cadbury Code Report (1992)-BCCI6
3.Greenbury Report (1995)-British Gas7
4.Hample report (1998)7
5.Turnbull report (1999)-Barings7
6.Higgs & Smith Report (2003)-Enron, WorldCom and Tyco8 Part II9

As Brian (2005) considers that corporate governance refers to the way in which companies and governed, and to what purpose, it also is a system, policy, statute, to lead, manage, control companies. The high quality corporate governance can help companies to underpin their long-term performance. Emmanue (2012) said that Wally corporate governance has become increasingly recognised worldwide as essential for the efficient functioning of market economies and to ensure that they function in the interests of the wider society, and it not just those with power and wealth. Corporate governance systems are not perfect, it has defected and leak, therefore, it results in many corporates collapse. In end of 1980s and began 1990s, the corporate governance scandals start to development in the UK. There were many corporate scandals happened, the financial reporting malfeasance, because of this reason, it led to the establishment of the Corporate Governance Committee code by Financial Reporting Council in 2003. The Combined Code can apply to the corporates that on the primary market of the London stock Exchange listed. In this essay part one, it will going to analysis the combined code, and through some cases to analysis their relationship, after this, it will discuss the Combined Code limited and problem in the part two.

Part I: Explain how the corporate collapses of the 1990s and early 2000s led to the publication of the first Combined Code in 2003 Part I
The Combined Code 2003
The UK Combined Code on corporate governance draws up standards of good practice in relation to issues such as board composition and development, remuneration, accountability and audit and relations with shareholders. Companies that registered and listed in the Main Market of the London Stock Exchange are required under the listing rules to report on how they have applied the Combined Code in their annual and financial reports. The Combined Code (2003) contents include others main reports and reviews which can be found in it. They are Cadbury report (1992), Greenbury Report (1995), Hampel Report (1998), Turnbull Report (1999), Higgs Report and Smith Report (2003). First of all, the essay will summaries the main contents and recommendation cover the Combined Code (2003). There are the summaries of these main headings as follows:

Firstly, under the directors:
* The unitary board and its role, which means that every company should have a strong, responsible, united board to lead the companies to be successful. * The roles of chairman and chief executive. There should be a clear division, which can responsibility at the head of the company between the board and executive. It can help there are no personal interests in the business decision. * The balance of executive and non-executive directors on the board and addresses the issue of independence * Appointments to the board. When appointment new directors, the board should be seriously, transparent, normal, and strict. * Information to be supplied to the board and professional development of director means that the board should provide the information in time and all directors should join the board, update and refresh their skills and...
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