The paper examines the principles of corporate governance and the circumstances that prompted the introduction the Combined Code (CC). The history of CC creation is related explaining the reasons behind the separation of the chairman function from the managing director function within a company, the issue of remuneration, the need of objective and independent audit, etc.
The dissertation examines the development of the corporate governance (CG) regimes in the USA and UK discussing the difference in their approaches to governance, the corporate bankruptcies and financial scandals, etc. The legal frameworks for CG in both countries are reviewed commenting on the Sarbanes-Oxley Act, the effects of EU on UK regulation, the move towards accountability and transparency in financial areas, etc. Conclusions are made about the similarities between the UK and the US corporate governance models and the impact of Sarbanes-Oxley Act on the US and UK economy, capital markets and Governance bodies.
The paper looks at the involvement of institutional shareholders in the internal governance of the company and the company's relationship with other stakeholder groups including society as a whole. Tools of corporate governance used by institutional shareholders in the UK are analysed highlighting their strong and weak points.
The paper examines the role of the Audit Committee (AC) in corporate governance CG) providing a review of literature on the agency theory, the issues of CG, the scandals related to CG failures, etc. Statistical methods of regression analysis of dependent and independent variables are employed to evaluate AC effectiveness. Conclusions are made about the correlation between AC and CG.
The paper examines the pension fraud in the UK exercised by the senior management CEO Robert Maxwell. The facts of the case are described critically analysing the role and responsibility of the boardroom and the external auditor, the accomplices to the corporate governance corruption, etc. The recommendations suggested by the Cadbury Report are discussed.
The paper looks at the international capital flows discussing the need to estimate barriers of investment in connection with the financial scandals of the past decades. The problem of corporate governance code is discussed highlighting its positive and negative aspects.
The paper explores the application of stakeholder theory and corporate governance to the corporate activities of Unilever. The disclosures made by Unilever in relation to its approach to environmental responsibility are analysed; the effectiveness of regulation in the development of voluntary ethical codes and a virtue ethic approach to business is discussed.
This paper analyses the relationship between the agency theory and the existing accountancy practices. The main argument is that accountancy practices are a result of the existence of principal – agent relationships.
This paper examines the case of corporate governance in the UK and in particular, the responsibilities of the board, including the chairman, chief executive, and directors and non-executive directors. It would be particularly useful for anyone interested in an overview of corporate governance and board responsibilities, as well as some background to the corporate scandals that have brought this area to the fore.
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