The following Risk & Compliance guidance note Produced in partnership with Charles Portsmouth and Sarah Hillary of Moore Stephens provides comprehensive and up to date legal information covering:
The purpose of corporate governance is to help build an environment of trust, transparency and accountability necessary for fostering long-term investment, financial stability and business integrity, thereby supporting stronger growth and more inclusive societies.
It is the system of rules, practices and processes by which an organisation is directed and controlled. Corporate governance essentially involves balancing the interests of an organisation's many stakeholders, including shareholders, management, workforce, customers, suppliers, financiers, government and community.
Corporate governance also provides the framework for attaining an organisation's objectives, encompassing practically every sphere of management. It creates a transparent set of rules and controls in which stakeholders have aligned incentives.
See subtopic: The corporate governance regime.
All directors have statutory duties and there is an increasing focus on these as part of the various corporate governance codes that are used in the UK. There is a myriad of other legislation that could call into question an organisation’s corporate governance, including Health & Safety law (see subtopic: Health and safety in the workplace), the Modern Slavery Act 2015 (see subtopic: Slavery and human trafficking), the Corporate Manslaughter and Corporate Homicide Act 2007, and the data protection regime (see subtopic: GDPR compliance—regulatory regime).
Some organisations are positively required to meet the requirements of a corporate governance code, eg:
fully listed organisations must meet the
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