12. Oversight by regulators Flashcards
Summarise Governance practices - processes and procedures
Corporate Governance Code 2018
OECD principle of Corp Gov
eg:
Board and its functions
Assessment of performance in carrying out governance responsibilities
Board performance and evaluation
BE consist of 2 areas:
structure and behaviour and activities of D (collectively and individually)
What can BE achieve?
Provide insight and comparison on how other boards operate, how they dealt with similar issues.
Identify barriers that stop them from being as effective as possible.
Review as soon as poss, act upon recommendations
Listed Co must outline the Ev process and recommendation in the AR and report back progress in the following year’s report
Protection of stakeholders
Stakeholders rights are protected under the CGC, Wates Code principles.
Section 172 statement (all co, except for small or med-size) on how the directors have performed their duties under the the Act.
Members can bring derivative action claim or unfair prejudice claim.
Employees - protection under legislation, redundancy rules
Directors - indemnity insurance
What investigation powers do the regulators have?
BEIS
Secretary of State can appoint an inspector with a power to examine witness under caution;
require production of docs and records for examination by BEIS.
No right of entry or search without a search warrant
6 areas of inspection
1. affairs of the co
2. ownership
3. directors share dealings
4. production of documents
5. re overseas regulatory authorities
6. under FSMA 2000.
HMRC
Tax returns, tax credits and allowances
FCA and PRA (Prudential Regulation Authority)
Competition and Market Authority (cartels, consumer protection)
The panel of Takeovers and Mergers
In general, how is the power of entry and search granted and by who?
By the courts/magistrates to a police constable.
