Review Of The Role And Effectiveness Of Non-executive Directors
   HOME
*





Review Of The Role And Effectiveness Of Non-executive Directors
''Review of the role and effectiveness of non-executive directors'' (or the "Higgs review") was a report chaired by Derek Higgs on corporate governance commissioned by the UK government, published on 20 January 2003. It reviewed the role and effectiveness of non-executive directors and of the audit committee, aiming at improving and strengthening the existing Combined Code. There was widespread unrest after the scandals in the US, involving Enron, WorldCom, and Tyco. The US opted for legislation under the Sarbanes–Oxley Act. Higgs strongly backed the existing non-prescriptive approach to corporate governance: "comply or explain". Yet he advocated more provisions with more stringent criteria for the board composition and evaluation of independent directors. He wanted to remove some of the discretion that the Code allowed. Higgs viewed the earlier scandals, which led to the Cadbury Report could have been avoided had a Code been in place. The Robert Maxwell debacle could have b ...
[...More Info...]      
[...Related Items...]     OR:     [Wikipedia]   [Google]   [Baidu]  


Derek Higgs
Sir Derek Alan Higgs (3 April 1944 – 28 April 2008) was an English businessman and merchant banker. He was knighted in 2004. His father, Alan Higgs, was a multimillionaire through property businesses in the Midlands. Early life Sir Derek was born in Birmingham, Warwickshire and was educated at Solihull School, and in 1963 he went to the University of Bristol and graduated in Economics and Accounting in 1966. Business career After graduating from the University of Bristol in 1966, Sir Derek joined Price Waterhouse, a large accountancy firm, and after training he qualified as a Chartered Accountant. In 1969 he became a corporate finance executive at Baring Brothers, a merchant bank. He moved-on and joined S. G. Warburg & Co. in 1972 and continued his career in merchant banking. He was also a board member of several companies including Prudential, British Land, and Coventry City Football Club. In 2002 the British Labour Government commissioned Sir Derek to chair the '' Rev ...
[...More Info...]      
[...Related Items...]     OR:     [Wikipedia]   [Google]   [Baidu]  


Hampel Report
The Hampel Report was designed to be a revision of the corporate governance system in the UK. The remit of the committee was to review the Code laid down by the Cadbury Report (now found in the Combined Code). It asked whether the code's original purpose was being achieved. Hampel found that there was no need for a revolution in the UK corporate governance system. The Report aimed to combine, harmonise and clarify the Cadbury and Greenbury recommendations. On the question of in whose interests companies should be run, its answer came with clarity. The Hampel Report relied more on broad principles and a 'common sense' approach which was necessary to apply to different situations rather than Cadbury and Greenbury's 'box-ticking' approach. See also * Combined Code * Cadbury Report (1992) * Greenbury Report (1995) * Turnbull Report * Higgs Report (2003) * Smith Report (2003) Notes External links Full text of the combined code 2006 Full text of the combined code 2003* The Fi ...
[...More Info...]      
[...Related Items...]     OR:     [Wikipedia]   [Google]   [Baidu]  


Reports On Finance And Business
A report is a document that presents information in an organized format for a specific audience and purpose. Although summaries of reports may be delivered orally, complete reports are almost always in the form of written documents. Usage In modern business scenario, reports play a major role in the progress of business. Reports are the backbone to the thinking process of the establishment and they are responsible, to a great extent, in evolving an efficient or inefficient work environment. The significance of the reports includes: * Reports present adequate information on various aspects of the business. * All the skills and the knowledge of the professionals are communicated through reports. * Reports help the top line in decision making. * A rule and balanced report also helps in problem solving. * Reports communicate the planning, policies and other matters regarding an organization to the masses. News reports play the role of ombudsman and levy checks and balances on the ...
[...More Info...]      
[...Related Items...]     OR:     [Wikipedia]   [Google]   [Baidu]  


picture info

United Kingdom Company Law
The United Kingdom company law regulates corporations formed under the Companies Act 2006. Also governed by the Insolvency Act 1986, the UK Corporate Governance Code, European Union Directives and court cases, the company is the primary legal vehicle to organise and run business. Tracing their modern history to the late Industrial Revolution, public companies now employ more people and generate more of wealth in the United Kingdom economy than any other form of organisation. The United Kingdom was the first country to draft modern corporation statutes, where through a simple registration procedure any investors could incorporate, limit liability to their commercial creditors in the event of business insolvency, and where management was delegated to a centralised board of directors. An influential model within Europe, the Commonwealth and as an international standard setter, UK law has always given people broad freedom to design the internal company rules, so long as the mandato ...
[...More Info...]      
[...Related Items...]     OR:     [Wikipedia]   [Google]   [Baidu]  


picture info

2003 In The United Kingdom
Events from the year 2003 in the United Kingdom. Incumbents *Monarch – Elizabeth II *Prime Minister – Tony Blair ( Labour) *Parliament – 53rd Events January * January – Toyota launches an all-new Avensis to be built at TMUK. * 10 January – Ian Carr, a 27-year-old banned from driving with a total of 89 previous convictions (including causing death by dangerous driving), admits causing the death by dangerous driving of a six-year-old girl in Ashington, Northumberland – a crime which sparks widespread public and media outrage across Britain. * 14 January – Anti-terrorism detective Stephen Oake is murdered in Crumpsall, Manchester by Islamic terrorist Kamel Bourgass after being stabbed eight times while attempting his arrest. * 25 January – Central line underground train crashes into the tunnel wall at Chancery Lane tube station in London, injuring 34 people. * 29 January – Sally Clark, a 38-year-old former solicitor from Cheshire, is released from prison afte ...
[...More Info...]      
[...Related Items...]     OR:     [Wikipedia]   [Google]   [Baidu]  




Reports Of The United Kingdom Government
A report is a document that presents information in an organized format for a specific audience and purpose. Although summaries of reports may be delivered orally, complete reports are almost always in the form of written documents. Usage In modern business scenario, reports play a major role in the progress of business. Reports are the backbone to the thinking process of the establishment and they are responsible, to a great extent, in evolving an efficient or inefficient work environment. The significance of the reports includes: * Reports present adequate information on various aspects of the business. * All the skills and the knowledge of the professionals are communicated through reports. * Reports help the top line in decision making. * A rule and balanced report also helps in problem solving. * Reports communicate the planning, policies and other matters regarding an organization to the masses. News reports play the role of ombudsman and levy checks and balances on the ...
[...More Info...]      
[...Related Items...]     OR:     [Wikipedia]   [Google]   [Baidu]  


picture info

Financial Reporting Council
The Financial Reporting Council (FRC) is an independent regulator in the UK and Ireland based in London Wall in the City of London, responsible for regulating auditors, accountants and actuaries, and setting the UK's Corporate Governance and Stewardship Codes. The FRC seeks to promote transparency and integrity in business by aiming its work at investors and others who rely on company reports, audits and high-quality risk management. In December 2018, an independent review of the FRC, led by Sir John Kingman, recommended its replacement by a new Audit, Reporting and Governance Authority, a recommendation followed by the government in March 2019. Ireland adopted the FRC's auditing framework in 2017. Structure The FRC is a company limited by guarantee, and is funded by the audit profession, who are required to contribute under the provisions of the Companies Act 2006 and by other groups subject to, or benefitting from FRC regulation. Its board of directors is appointed by the ...
[...More Info...]      
[...Related Items...]     OR:     [Wikipedia]   [Google]   [Baidu]  


Listing Rules
The Listing Rules (LR) are a set of regulations applicable to any company listed on a United Kingdom stock exchange, subject to the oversight of the Financial Conduct Authority (FCA). The Listing Rules set out mandatory standards for any company wishing to list its shares or securities for sale to the public, including principles on executive pay and the requirement to comply or explain noncompliance with the UK Corporate Governance Code, the requirements of information in a prospectus before an initial public offering of shares, new share offers, rights issues, disclosure of price sensitive information, or takeover bids for companies. Overview *LR 1, Preliminary: All securities *LR 2, Requirements for listing: All securities *LR 3, Listing applications: All securities *LR 4, Listing particulars for professional securities market and certain other securities: All securities *LR 5, Suspending, cancelling and restoring listing: All securities *LR 6, Additional requirements for premiu ...
[...More Info...]      
[...Related Items...]     OR:     [Wikipedia]   [Google]   [Baidu]  


Smith Report
The Smith Report was a report on corporate governance submitted to the UK government in 2003. It was concerned with the independence of auditors in the wake of the collapse of Arthur Andersen and the Enron scandal in the US in 2002. Its recommendations now form part of the Combined Code on corporate governance, applicable through the Listing Rules for the London Stock Exchange. It was substantially influenced by the views taken by the EU Commission.Official Journal, 19.07.2002, ''Commission Recommendations, Statutory Auditors' Independence in the EU: A Set of Fundamental Principles''. 200OJ L 191/22/ref> One important point was that an auditor himself should look at whether a company's corporate governance structure provides safeguards to preserve his own independence. See also * Combined Code * Cadbury Report (1992) * Greenbury Report (1995) * Hampel Report (1998) * Turnbull Report * Higgs Report (2003) References External linksSmith Report (in full)
[...More Info...]      
[...Related Items...]     OR:     [Wikipedia]   [Google]   [Baidu]  


Turnbull Report
''Internal Control: Guidance for Directors on the Combined Code'' (1999) also known as the "Turnbull Report" was a report drawn up with the London Stock Exchange for listed companies. The committee which wrote the report was chaired by Nigel Turnbull of The Rank Group plc. The report informed directors of their obligations under the Combined Code with regard to keeping good "internal controls" in their companies, or having good audits and checks to ensure the quality of financial reporting and catch any fraud before it becomes a problem. Revised guidance was issued in 2005. The report was superseded by a further FRC guidance issued in September 2014.https://www.frc.org.uk/Our-Work/Codes-Standards/Corporate-governance/UK-Corporate-Governance-Code/Guidance-for-boards-and-board-committees.aspx See also * UK company law * Corporate Governance * Cadbury Report (1992), ''Financial Aspects of Corporate Governance'', on corporate governance generally. Pdf filhere* Greenbury Report (1995) ...
[...More Info...]      
[...Related Items...]     OR:     [Wikipedia]   [Google]   [Baidu]  




Greenbury Report
The Greenbury Report released in 1995 was the product of a committee established under the auspices of the United Kingdom Confederation of British Industry. The committee was formed at the behest of the President of the Board of Trade, Michael Heseltine, as a result of several scandals in the early 1990s. It followed in the tradition of the Cadbury Report and addressed a growing concern about the level of director remuneration. The modern result of the report is found in thUK Corporate Governance Codeat section D. Committee Members Sir Richard Greenbury, Chairman & CEO, Marks and Spencers. Sir David Chapman Partner, Wise Speke Stockbrokers. Sir Michael Angus, Chairman, Boots/Whitbread. Sir Denys Henderson, Chairman, Rank Organisation. Mr Geoff Lindey, JP Morgan. Mr Tim Melville-Ross, Director general, Institute of Directors. Mr George Metcalfe Chairman & CEO, UMECO. Sir David Simon, Chairman, BP. Sir Iain Vallance, Chairman, BT. Mr Robert Walther, CEO, Clerical Medical. ...
[...More Info...]      
[...Related Items...]     OR:     [Wikipedia]   [Google]   [Baidu]  


Corporate Governance
Corporate governance is defined, described or delineated in diverse ways, depending on the writer's purpose. Writers focused on a disciplinary interest or context (such as accounting, finance, law, or management) often adopt narrow definitions that appear purpose-specific. Writers concerned with regulatory policy in relation to corporate governance practices often use broader structural descriptions. A broad (meta) definition that encompasses many adopted definitions is "Corporate governance” describes the processes, structures, and mechanisms that influence the control and direction of corporations." This meta definition accommodates both the narrow definitions used in specific contexts and the broader descriptions that are often presented as authoritative. The latter include: the structural definition from the Cadbury Report, which identifies corporate governance as "the system by which companies are directed and controlled" (Cadbury 1992, p. 15); and the relational-structura ...
[...More Info...]      
[...Related Items...]     OR:     [Wikipedia]   [Google]   [Baidu]