UK CORP GOV CODE 1.1

Question 1

Corporate governance

Answer 1

The system by which companies are directed and controlled

Question 2

Directors are responsible for

Answer 2

The governance of their companies

Question 3

Shareholders are responsible for

Answer 3

the appointment of directors and auditors

Question 4

Board is responsible for

Answer 4

Setting the company’s strategic aims, providing the leadership to affect those aims, supervising the management of the business and reporting to shareholders.

Board’s actions are subject to laws, regulations and shareholders ina general meeting

Question 5

Good Governance is supported by the UK Corporate Governance Code and should

Answer 5

Facilitate efficient, effective and entrepreneurial management that delivers shareholder value over the long term

Question 6

The UK Corporate Governance Code applies to

Answer 6

all companies with a premium listing of equity shares in the UK, regardless of whether they are incorporated in the UK or overseas

Question 7

The latest edition of the corporate governance code was published n July 2018 and takes effect for the accounting period beginning from 1 Jan 2019, so

Answer 7

the current annual report and accounts will still reference the previous version, published in 2016. The latest code follows a review published in 2017 by the Financial reporting council

Question 8

The revised corporate governance code emphasises the importance of:

Answer 8

1) Positive relationships between companies, shareholders and stakeholders
2) A clear purpose and strategy aligned with healthy corporate culture
3) high-quality board composition and a focus on diversity
4) Remuneration which is proportionate and supports long-term success

Question 9

The revised corporate governance code is designed to

Answer 9

1) Set higher standards of corporate governance to promote transparency and integrity
2) Attract investment in the UK for the long-term, benefitting the economy