TELECITY GROUP PLC

Corporate Governance: Telecity Group plc

Corporate Governance: Telecity Group plc

Introduction

Corporate governance is the system for the proper regulation and control of the companies. This system consists of different policies and laws to govern the shareholders, stakeholder, customers, suppliers, management and all the corporate activities (corporategovernanceoup.wordpress.com). Successful Corporate governance is the most important factor on which sustainability of a company depends. It deals with the customs, conflicts, policies, accountability and transparency of the business organization. One of the most important features associated with the corporate governance deals with the corporate scandal and corporate collapse (corporategovernanceoup.wordpress.com). These problems led to the requirement of proper codes, which can ensure the accountability and transparency in the corporate matters and assist in avoiding any misconduct. In UK it led to the first corporate governance code: the UK's Cadbury Report in 1980s (corporategovernanceoup.wordpress.com). This provides the concept of implementing system for the audits, corporate governance boards, committees and system for assessing the corporate social responsibility.

Under the system of the corporate governance there is complete regulation for the management of the corporate entities, interaction between management, board, customers and suppliers. It also provides proper assistance for the company policy making and goal settings (corporategovernanceoup.wordpress.com). Corporate governance in UK, deals with the “effectiveness, the role of board committees, risk management, remuneration and relations with shareholders. Listed companies are required under the Listing Rules either to comply with the provisions of the Code”(www.frc.org.uk). According to Financial Reporting Council of UK (2010), to ensure accountability and transparency, these companies are required to disclose all the relevant information in their financial statements and in case of deviation from code these companies are bound to explain their investors (www.frc.org.uk). There are a number of advantages to follow these standards of UK Corporate Governance. It assist in companies in designing the business modal, due to which, all listed companies in UK comply with this code. One of such companies is Telecity Group plc, which rules over European digital economy as a leading provider of “secure and highly-connected environments for the IT and telecoms equipment” (www.telecitygroup.com).

Company Overview

Telecity Group deals with the highly connected telecommunication and IT equipments. There a number of highly efficient data centres which deals with the better system of networking provide secure environment for the national and international connectivity (www.telecitygroup.com). The customers of Telecity Group includes internet and telecommunication providers which deals all over the world in providing internet and telecommunication services. Telecity Group provides them support for the equipments, power supply, engineering and mechanical support, high connectivity and different other IT services (www.telecitygroup.com). Telicity Group has a special system of data centres which are buildings, which has electrical and mechanical infrastructure with heavy telecommunication equipments. This system deals with the big telecommunication and internet industries to provide them solution for all their problems.

Business Model

Business model is the framework which defines complete process and operation of the business organization. It deals with defining the culture, value, environment, structure, policies, goals and complete infrastructure of the ...