“Corporate Governance is the system by which companies are directed and controlled” – Cadbury Committee 1992

The difference between good and bad Corporate Governance can be small but is vital to the success of a company

Good corporate governance can take many forms depending on the structure and history of the company, the nature of the industry and the characteristics of the stakeholders. However, it generally encompasses certain key features:

1. Board leadership

It is essential that the board takes the lead on strategic planning and risk mitigation. Yet without the proper processes and oversight, the board is often constrained from exercising this function.

2. Appropriate delegation

Decisions need to be made at the appropriate level in order for a company to be managed efficiently. Clear levels of delegation are key but so is the empowering of staff to embrace such delegation.

3. Adequate controls

Delegated authority needs to be matched with adequate controls ensuring that powers are exercised properly and responsibly. This gives the board the confidence and comfort they require in relation to delegation.

4. Information flow

Integral to any good system of governance is a consistent flow of high quality information. This includes information flows within the organisation, but also between the organisation and its external stakeholders.

5. Alignment of stakeholders

The overriding aim of a good corporate governance system is to achieve alignment between all of the stakeholders in a company. This includes the board, the management, the employees and the shareholders and, once achieved, ensures that everyone is working towards the same goal.

We specialise in providing corporate governance advice and assistance to a wide range of companies, including listed companies, large private groups and charities. Repeated studies have shown that organisations with good corporate governance consistently outperform those without. Our team is committed to helping your organisation reach the highest standards of corporate governance.

Please contact us to discuss your specific requirements.

GOVERNANCE FOR SMALLER PLCS

The corporate governance regime for smaller PLCs is much more flexible than for FTSE companies and differs in many key ways. Here we look at some of the major differences.

Find out more

DIRECTOR’S DUTIES

Fundamental to any corporate governance regime is the proper implementation of the director’s duties as set out in the Companies Act 2006. This forms of the basis of most governance principles.

Directors duties

CRITICAL MEETING?

If you need assistance with a critical board or shareholder meeting, then please take a look at our tailored meeting support.

Meeting Support