Report of the Committee on the financial aspects of corporate governance: the code of best practice

Article Abstract:

Extracts from the final report of the Cadbury Committee on the financial aspects of corporate governance are enumerated. The report, published on Dec 1, 1992, is the result of consultations based on an antecedent draft that was released on May 27, 1992. Recommendations of the committee include the compliance of the board of directors of all listed UK companies to the Code of Best Practice. An auditor-reviewed statement to be included in corporate reports and accounts regarding their compliance and justification for non-compliance is also advised. The Committee also advocates the listing of the report by the London Stock Exchange and the appointment of a body that would evaluate code compliance. Also, the Cadbury Committee acknowledged that each individuals and boards may follow the code in any manner they deem appropriate and that small companies may have a hard time complying.

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Cadbury: precedence of substance over form

Article Abstract:

The Committee on the Financial Aspects of Corporate Governance, also known as the Cadbury Committee, was established in 1991 to address the issue of the deteriorating credibility of auditors and financial reports. The Committee determined that its main task should be to encourage good corporate governance without unduly restricting enterpreneurial iniative. In Dec 1992, it released the Cadbury Report containing proposals for improving corporate governance. The Committee's primary recommendation is compliance with the code of best practice for corporate governance by all UK listed firms. Among the more important elements of the code of best practice are the participation of a sufficient number of non-executive directors in the board decisions, full disclosure of director compensation and the creation of audit committees whose members are all non-executives.

United Kingdom. Committee on Corporate Governance

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Paying the piper

Article Abstract:

The Organization for Economic Cooperation and Development has established the Principles of Corporate Governance to elevate the standards of business reporting. Topics include economic influence of corporate governance standards, necessity of corporate disclosure, and altering of national accountability standards.

World, Management, Economic development, Organization for Economic Cooperation and Development, Business reports

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