The mechanics of robust corporate governanceTMF Group
After attending Morrow Sodali's seminar on Corporate Governance at the recent IOD Open House event, Sue Lawrence of TMF Group wrote an article on the mechanism of robust corporate governance and on the panel's focus on "What is good Corporate Governance?"
Amongst the wide-ranging discussion, panellists reflected on the ongoing importance of the UK Governance Code. As part of its most recent review in April 2016 the original definition in 1992 by the Cadbury Committee was reiterated that:
“Corporate governance is the system by which companies are directed and controlled. Boards of directors are responsible for the governance of their companies … The responsibilities of the board include setting the company’s strategic aims, providing the leadership to put them into effect, supervising the management of the business and reporting to shareholders on their stewardship…”
Whilst specifically applicable to companies listed in the UK, its use underpins robust corporate governance across all companies. Even fast growing new startups need to have a semblance of corporate structure, leadership, oversight and evidence as they continue on their successful path. This becomes particularly important if external funding is sought to further grow the business and to meet regulatory oversight requirements.
Read the entire article.