Corporate Governance in Uk

12381 WordsJul 29, 201050 Pages
Corporate Governance in UK Table of Contents 1. history 3 1.1 Developments since 1979 6 2. evolution of corporate governance 8 2.1 Cadbury Report (1992) 8 2.2 Greenbury Report (1995) 9 2.3 Hampel Report (1998) 9 2.4 Combined Code (1998) 10 2.5 Turnbull Report (1999) 11 2.6 Myners: Review of Institutional Investment (2001) 11 2.7 Higgs Report (2003) 12 2.8 Smith Report (2003) 12 2.9 Revised Combined Code (2003) 13 2.10 Myners Report (2004) 14 2.11 Financial Reporting Council 14 3. Corporate Governance in UK TODAY 15 3.1 The rationale behind the UK approach 15 3.2 The UK regulatory framework 15 3.3 The essential features of UK corporate governance 16 4. The Combined Code 18…show more content…
As for the relationship between listed companies and investors, this, too, was arm’s length in character. Boards of directors exercised considerable discretion over the assets at their disposal, subject to a series of Companies Acts which were designed to protect investors against fraud. In 1920s the structure of British industry was changing, with the emergence of larger companies, often through merger; the creation in 1926 of Imperial Chemical Industries(ICI), formed out of four major chemical companies, was a notable example. These companies had larger demands for capital than their 19th century predecessors, and the flow of companies seeking a stock exchange listing increased; the number of domestic industrial and commercial companies listed in London reached 1712 in 1939, compared with 569 in 1907. The increase in flotations by domestic companies created an opportunity for the merchant banks in the City to develop their corporate finance business, advising companies on capital-raising, and on mergers and acquisitions. In a few cases the merchant banks were represented on the boards of the companies they advised, but this was more because of personal connections than in any monitoring role on behalf of all shareholders. As the number of public issues increased, shares became a more popular form of investment, and ownership spread more widely. Investors who had bought
Open Document