Origins Of The Term Corporate Governance

Question 1

How does the English Dictionary define governance?

Answer 1

The way that organisations or countries are managed at the highest level and the system for doing this.

Question 2

Who was the first person to use the term ‘Corporate Governance’?

Answer 2

Bob Tricker

Question 3

What was the name of Bob Trickers article in which he first used the term ‘Corporate Governance’?

Answer 3

Perspectives on corporate governance: Intellectual influence in the exercise of corporate governance.

Question 4

What year was Bob Trickers article ‘Perspectives on corporate governance: Intellectual influence in the exercise of corporate governance’ published?

Answer 4

1983

Question 5

Who edited Bob Tricker’s 1983 published Article ‘Perspectives on corporate governance: intellectual influences in the exercise of corporate governance’?

Answer 5

Michael Earl

Question 6

What did Bob Ticker realise in the 1970s?

Answer 6

‘Governance’ was different from ‘management’

Question 7

Who said the quote: ‘The proper governance of companies will become as crucial to the world economy as the proper governing of countries’?

Answer 7

James Wolfemsohn - Former President of the World Bank.

Question 8

Who is James Wolfensohn?

Answer 8

Former President of the World Bank

Question 9

Who asked Sir Adrian Cadbury to chair a committee in May 1991?

Answer 9

Financial Reporting Council (FRC), the London Stock Exchange and Accountancy Profession

Question 10

What year was Sir Adrian Cadbury asked to chair a committee by the Financial Reporting Council (FRC), London Stock Exchange and the Accountancy Profession?

Answer 10

May 1991

Question 11

Why was Sir Adrian Cadbury asked to chair a committee in May 1991 by the Financial Reporting Council (FRC), London Stock Exchange and Accountancy Profession?

Answer 11

Due to an increasing lack of investor confidence in the honesty and accountability of listed Companies

Question 12

Whilst the committee, headed by Sir Adrian Cadbury in May 1991 was in session, where did further two scandals take place?

Answer 12

Bank of Credit and Commerce International (BCCI) and Mirror Group News International

Question 13

Name the companies which financially collapsed leading to the establishment of a committee chaired by Sir Adrian Cadbury in May 1991

Answer 13

Coloroll
Polly Beck

Question 14

What year were the recommendations from the committee, chaired by Sir Adrian Cadbury published?

Answer 14

1992

Question 15

Where were the recommendations from the Committee, chaired by Sir Adrian Cadbury in May 1991 published?

Answer 15

‘The Report of the Committee on the Financial Aspects of Corporate Governance: The Code of Best Practice’

Question 16

What is a better name for ‘The Report of the Committee on the Financial Aspects of Corporate Governance: The Code of Best Practice’ better known as

Answer 16

The Cadbury Report

Question 17

Give another name for the Cadbury Report:

Answer 17

The Report of the Committee on the Financial Aspects of Corporate Governance: The Code of Best Practice

Question 18

What 9 topics were covered by the Cadbury Report, published in 1992

Answer 18

1. Board effectiveness;
2. The roles of the chair and non-executive directors;
3. Access to independent professional advice;
4. Directors training;
5. Board structures and procedures; 6. The role of the Company Secretary;
6. Directors responsibilities;
7. Internal financial controls;
8. Internal audit

Question 19

What was the name of the Committee, chaired h Sir Adrian Cadbury in May 1991?

Answer 19

The Cadbury Committee

Question 20

What was the more general definition by Sir Adrian Cadbury, Chair of the Cadbury Committee?

Answer 20

‘Corporate Governance, the system by which organisations are directed and controlled is based on the concepts of transparency, independence, accountability and integrity’

Question 21

According to Sir Adrian Cadbury, what are the 4 concepts by which organisations are directed and controlled?

Answer 21

1. Transparency;
2. Independence;
3. Accountability;
4. Integrity;

Question 22

According to the general definition by Sir Adrian Cadbury, what is Corporate Governance?

Answer 22

‘Corporate Governance is the system by which organisations are directed and controlled, based on concepts of transparency, independence, accountability and integrity’.

Question 23

Who adapted Sir Adrian Cadbury’s definition of Corporate Governance?

Answer 23

The Chartered Institute of Public Finance and Accountancy (CIPFA).

Question 24

How does the Chartered Institute of Public Finance and Accountancy define Corporate Governance in relation to the local government sector?

Answer 24

‘The system and processes, the cultures and values by which local
Government bodies are directed and controlled and through which they account to, engage with and, where appropriate, lead their communities’

Question 25

In 1984 what was Bob Tricker quoted as saying?

Answer 25

‘If management is about running business, governance is about sawing that it is run properly. All companies need governing as well as managing.

Question 26

How does the Cadbury Committee (1992) define corporate governance?

Answer 26

The system by which companies are directed and controlled.

Question 27

What year did The Organisation for Economic Co-operation and Development (OECD) publish its Corporate Governance Principles?

Answer 27

1999 (later revised in 2004)

Question 28

What year were The Organisation for Economic Co-operation and Development (OECD) publish its Corporate Governance Principles revised?

Answer 28

2004

Question 29

How did The Organisation for Economic Co-operation and Development (OECD) define Corporate Governance?

Answer 29

‘A set of relationships between a company’s management, its board, its shareholders and other stakeholders… also provides the structure through which the objectives of the company are set and the means of attaining those objectives and monitoring performance are determined.’

Question 30

When was The Organisation for Economic Co-operation and Development (OECD) founded?

Answer 30

1961

Question 31

How many member countries form part of ‘The Organisation for Economic Co-operation and Development (OECD)?

Answer 31

37

Question 32

Why was The Organisation for Economic Co-operation and Development (OECD) founded?

Answer 32

To stimulate economic progress and world trade

Question 33

What year was the definition of Corporate Governance updated by The Organisation for Economic Co-operation and Development (OECD)?

Answer 33

2015

Question 34

In 2015 how did The Organisation for Economic Co-operation and Development (OECD) define Corporate Governance?

Answer 34

It ‘help(s) build an environment trust, transparency and accountability necessary for fostering long-term investment, financial stability and business integrity, thereby supporting stronger growth and more inclusive societies.’

Question 35

In 2004, how did The New Partnership for African Development (NEPAD) Declaration on Democracy, Political, Economic and Corporate Governance define Corporate Governance?

Answer 35

‘Concerned with ethical principles, values and practices that facilitate the balance between economic and social goals and between individual and communal goals. The aim is to align as nearly as possible the interests of individuals, corporations and society within the framework of sound governance and common good.’

Question 36

What year did The New Partnership for African Development (NEPAD) Declaration on Democracy, Political, Economic and Corporate Governance define Corporate Governance?

Answer 36

2004

Question 37

What year did G20/The Organisation for Economic Co-operation and Development (OECD) issue a new set of corporate governance principles?

Answer 37

2015

Question 38

What does OECD stand for?

Answer 38

The Organisation for Economic Co-operation and Development

Question 39

In 2015, the G20/The Organisation for Economic Co-operation and Development (OECD) issued a new set of corporate governance principles, what did these state?

Answer 39

Corporate governance practices should ‘help build an environment of trust, transparency, and accountability necessary for fostering long-term investment, financial stability and business integrity, therefore supporting stronger growth and more inclusive societies.’

Question 40

What did the King IV Report on Corporate Governance for South Africa define corporate governance as in 2016?

Answer 40

The exercise of ethical and effective leadership by the governing body towards achievement of the following governance outcomes: - ethical cultures - good performances - effective control - legitimacy

Question 41

What year did the King IV Report on Corporate Governance for South Africa define corporate governance?

Answer 41

2016

Question 42

What 4 governing outcomes does the King IV Report on Corporate Governance for South Africa include in its definition of corporate governance?

Answer 42

- ethical cultures; - good performance; - effective control; - legitimacy;

Question 43

Who stated ‘The purpose of corporate governance is to facilitate effective, entrepreneurial and prudent management that can deliver the long term success of the company.’

Answer 43

The UK Corporate Governance Code 2016

Question 44

How does The UK Corporate Governance Code 2016 define Corporate Governance?

Answer 44

‘Corporate Governance is therefore about what the baked of a company does and how it sets the flakes of The company. It is to be distinguished from the day to day operational management of the company by full-time executives.’