What is corporate governance?
Corporate governance can be defined as the system by which companies are directed and controlled1. The corporate governance structure specifies the distribution of rights and responsibilities among the different participants in the organisation – such as the board, managers and shareholders2.
In the UK, corporate governance is regulated through the Companies Act 2006, the June 2008 Combined Code on Corporate Governance and associated guidance3. This framework provides companies and shareholders with standards of good practice in relation to issues such as board composition and development, remuneration, accountability and audit as well as relations with shareholders.
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