CORPORATE GOVERNANCE

Financial Accounting Reporting and Analysis

Financial Accounting Reporting and Analysis

Introduction

This paper intends to explore the Code of Corporate Governance 2010 of UK. Further, it explains what Non Executive directors are seeking to achieve. This paper also discusses the major elements of Stewardship code of UK.

Discussion

UK Corporate Governance

Background

The late 1980s, the UK corporate governance as the early 21st century United States, facing a huge crisis of confidence. At that time Britain's Mirror Group, BCCI, Polly Peck and other well-known company broke a series of serious financial fraud, led to the British sector of the theory and practice of corporate governance issues of great concern and heated debate. To stabilize the socio-economic and security interests of investors, the British established a committee headed by Sir Adrian Cadbury to investigate, and in 1992 published the famous "Cadbury Report." (Hampel, 1998).

The report laid the British series of the basis for corporate governance reform, and the formation of a unique survey of corporate governance model, that the authority of scholars led by the Special Committee for the issue of corporate governance in a particular investigation, evidence collection, discussion, analysis and research, and monitoring the implementation of the final report issued by the process.

The term corporate governance is perceived differently from one country to another, referring to different topics, persons or institutions and with different intensity and nature depending on the country and the circumstances, therefore, legal protection of investors will be different in each country depending on the origin of the rules (Keenan, J. and Aggestam, 2001). In this sense, the literature seems to be consensus to distinguish two models of corporate governance : (a) the Anglo-American model, characterized by a relative passivity of shareholders and institutional investors, a board that does not is always independent of the direction, which is not allowed to ...