Combine Code Essay Example | Topics and Well Written Essays - 1000 words

Combine Code - Essay Example Every stakeholders or shareholders shall also have the right to examine the organization’s books of account to its satisfaction. Dialogues and consultation between the board of directors and the stakeholders should not be limited to the annual general membership (AGM) meeting. In the interest of the public’s and stakeholder’s rights, the accurate state and fiscal condition of the organization shall be fully disclosed to the stakeholders. The United Kingdom’s Corporate Governance Code’s aims to protect the interest of stakeholders or shareholders of the organization in particular and the public’s interest in general. The Governance Code mandates that controls and risk mitigation processes with the aim of protecting the interest of stakeholders are instituted and maintained by the executive board tasked to manage the affairs of the organization on day to day basis. The executive board are mandated to regularly report incidents and or explain in cidents that would appear to be serious breaches in security. B. Explain why over the last two decades, numerous attempts have been made to improve corporate governance in the UK Organizations that operated in multiple jurisdictions have in the past been threatened by scandals or have been embroiled in scandals that affected not only the financial health of the countries where they operate but also the shareholders who are residents of the UK. Foremost of these are financial institutions hold principal offices in the UK or most of its stakeholders are UK residents and the same organizations due to size, operation and influence have threatened the economic health of a country or the region in general if they are not properly managed. Exercising its inherent right to protect the public’s interest, the government has been mandated to ensure that corporate governance is properly implemented in every organization where it has jurisdiction. This is to ensure that any financial mism anagement is detected and mitigated before it can adversely affect the entire organization and the country in general. Corporate governance is a set of controls designed to ensure that all decisions of the executive leadership of an organization are compliant with good governance or if not, the leadership should be able to explain the rationale behind such decisions or directions. The UL Combined Code of Corporate Governance are therefore designed to prevent a national financial crisis that can be rooted from mismanagement or mishandling of funds in particular or the company in general from taking place. Recognizing the need from the experience of other countries, specially the United States, and was affirmed by its own experience in the 2008 financial crisis, the UK reviewed its corporate governance law. The need to improve stricter controls and update the intent and scope of the law prompted the review and revision of the UK combined code of corporate governance. C. Outline the re commendations of the UK Combined Code (2010) concerning the ‘board chairman’ and briefly discuss why the code does not support board duality. Corporate governance practices have been embedded in corporate structures to make corporate officers more aware of their responsibilities and demand from them accountability and transparency in the performance of their fiduciary functions as well as in