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Based on Tesco's report, clear divisions of accountability and responsibility exist and operate effectively for the positions of Chairmanand Chief Executive. The Chairman has primary responsibility for running the Board, while the Chief Executive has executive responsibilities for the operations and results of the Group and making proposals to the Board for the strategic development of the Group.

The relationship between the chairman and chief executive is of crucial importance since it lies at the heart of a network of other associations. Its quality has knock-on consequences, affecting relationships with other board members and the executive team. (Stiles P, Bernard T,2001)

This code of good governance can thus be said to have been fulfilled by Tesco plc.

5.1.3 Board balance and Independence

As stated before, Tesco's board is well balanced with half being non-executives. There is a total of sixteen members, who brings about a wealth of information and expertise in different areas and hence, represent a truly efficient board.

The Combined Code on Corporate Governance sets out guidance in the form of principles and provisions on how companies should be directed and controlled to follow good governance practice. The Financial Services Authority (FSA) requires companies listed in the UK to disclose, in relation to Section 1 of the Combined Code, how they have applied the principles and whether they have complied with its provisions throughout the financial year. Where the provisions have not been complied with companies must provide an explanation for this.

In respect of this code, Tesco was not in full compliance due to two of its non executive directors having resigned because of conflict of interests. Therefore, there was a larger number of executives than non-executives for part of the year for the company. Tesco needs to make sure that it can rectify this situation as soon as possible to ensure a balanced board and complying with the UK Combined Code.

5.1.4 Appointments to the board

The company has a nominations committee which oversees appointments to the board. This committee also leads the process for re-election and succession of directors. The committee is chaired by Mr Reid, chairman of the board and a separate section of the annual report describes the work of the committee, hence satisfying the code provision.

An analysis of the report shows that where conflicts of interests exist for board members, the nominations committee has ensured that these conflicts to be eradicated as soon as possible to uphold shareholder confidence in the board.

5.1.5 Information and Professional Development

Tesco's directors receive a personalised induction programme to develop their knowledge of the group's culture and operations. There is also regular assessment by the board for the need of director training. Unfortunately, I was unable to evaluate whether the board is supplied in a timely ma本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。