UK Corporate Governance Regulations

Question 1

What is Corporate Governance?

Answer 1

1. The way in which companies are directed and controlled
2. The way in which the affairs of corporations are handled by their corporate boards and officers.
3. Balancing the interest of company’s shareholders, management, customers, government and the community.

Question 2

What is the Financial Reporting Council (FRC) responsible for?

Answer 2

1. Setting corporate governance standards in the UK such as: the UK Corporate Governance Code and the Stewardship Code.
2. Setting UK financial reporting standards.
3. Setting standards for governing auditing and actuarial work.

Question 3

The UK Corporate Governance Code is split into five sections. What are these?

Answer 3

1. Board leadership and company purpose.
2. Division of responsibilities.
3. Composition, succession and evaluation.
4. Audit, risk and internal control.
5. Remuneration.