10: Corporate governance Flashcards
What is the UK Corporate Governance Code?
It is a code of practice embodying a shareholder-led approach to corporate governance
Who does the UK corporate governance code apply to
applies to all premium listed companies.
Smaller and unlisted companies can be more flexible about how they want to apply the code
Is complying with the UK corporate governance code a legal requirement?
no
A ‘…. or ….’ approach is taken to the UK corporate governance code
comply or explain
who is responsible for setting the board’s agenda and ensuring that directors receive accurate timely and clear information?
the chair
who is responsible for the appointment, removal and remuneration of the executive directors?
Non-executive directors
The NEDs should meet without the Chair present at least ___ to approise the Chair’s performance
Annually
NEDs serving longer than _ years should be subjected to a rigorous review
6
Who can chair the committe? Hint its between two parties
The Chair or a NED
In what instance should the Chair not chair the committee?
When dealing with the appointment of the Chair’s new successor
Each director should be evaluated based on what two things?
The amount of time spent with the committee
The effectiveness of contribution
The relationship between the director and company
The director’s own relevant work experience
The amount of time spent with the committee (time committment)
The effectiveness of contribution
Can an executive director take on the role of a Chair at a premium listed company
No
Can an executive director take on the role of two NED roles in premium listed companies?
No.
Only one
Can a Chair chair more than one premium listed company
Yes
The audit committee must be chaired by a…?
NED
