Corporate Governance - best practice and ethical conduct in relation to the management of companies - has become a major issue affecting UK companies. Following the recent accounting scandals involving Enron and Worldcom, there is likely to be increasing pressure on UK companies to improve the quality and accountability of their internal systems and controls.
Many companies have already acknowledged that adopting proper systems of corporate governance can increase the efficiency of their internal management systems and improve relations with shareholders and prospective investors.
Furthermore, whilst the principles of corporate governance put forward in the Cadbury, Greenbury and Hampel Reports, and the Combined Code produced by the Committee on Corporate Governance, have until now been largely voluntary and non-statutory, announcements by the DTI suggest that a statutory system may well be introduced, complete with penalties imposed on those companies who fail to comply with the regulations. Indeed, some of the principles of corporate governance are already reflected in the requirements applicable to listed companies.
RadcliffesLeBrasseur advises on all aspects of corporate governance, including:
- the role of the board of directors, including non-executive directors.
- the remuneration of directors.
- directors' duties and responsibilities.
- relations with shareholders.
- reporting and information requirements.
- corporate ethics.
- fraud and illegality.