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a clear and credible company decision-making process;

Shareholders giving proper consideration to the information provided and making considered judgements.

The corporate governance framework in the UK operates at a number of levels:

through legislation particularly the Companies Act;

Through regulation and in particular for listed companies through the listing rules, which are the responsibilities of theFinancial Services Authority.

Through the Combined Code which is the responsibility of the Financial Reporting Council. It contains general principles and more detailed provisions relating to the corporate governance of listed companies. It is appended to the FSA's Listing Rules, which require these companies, in their annual report and accounts to, (i) report on how they apply the principles, and (ii) confirm that they comply with the Code's provisions or, where they do not, provide an explanation: hence the 'comply or explain' principle which, if applied effectively, underpins informed dialogue between directors and shareholders. contains general principles.

What the above definitions are about is that organisations should be managed in the best interest of everyone connected. In other words, directors should not forget that they are the agents of the companies they manage and they have a responsibility towards the various stakeholders. Therefore, they should act with integrity and honesty and should not just be concerned with filling their own pockets.

The principal - agent problem consists of trust and risk. (Lee, A.T. 2006). This trust may be breached by the agents by pursuing their own interest or through negligence and fraud. History is witness to this abuse, which has resulted in shareholders losing their investments and employees losing their jobs with no fault of theirs. As a consequence, stakeholders now want reassurance that such scandals are not repeated, resulting in corporate governance frameworks around the world.

The success of a company based on the principal-agent relationship is dependent on the effectiveness of its corporate governance - particularly the competence and independence of its board of directors and various subcommittees. (Lee, A.T. 2006)

4.2 Various Corporate Governance Reports

The various scandals around the financial world prompted governments to review corporate governance, especially about those companies that are listed in the stock markets. This lead to a wide range of corporate governance reports being written by scholars around the world. The main ones in the UK are listed below, with a brief explanation about it.

4.2.1 The Cadbury report

The Cadbury Report, titled Financial Aspects of Corporate Governance, is a report of a committee chaired by Adrian Cadbury that sets out recommendations on the arrangement of company boards and accounting systems to mitigate corporate governance risks and failures. The report was published in 1992. The report's recommendations have been adopte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。