| Corporate Governance Issues
|
Best Practice Outcomes |
The selection of
a suitable and effective board including an objective
appointment process for directors
|
Enhances business performance |
The recruitment of
non-executive directors: greater diversity, improved professional
standards and understanding of legal liabilities
|
Better access to the
widest range of competent and professional non-executive
directors, leading to better business leadership and compliance
with legislation and codes |
Good practice among
investing institutions in supporting effective leadership
of business
|
A supportive investment
industry vital to the UK’s sustained prosperity
|
The application of
corporate governance to mid-size enterprises without inhibiting
growth
|
Create a climate for
enterprise and investment |
The need for top-down
responsibility for corporate governance and ethical standards
|
Creates a ‘lead
by example’ culture which enhances the governance
model |
Shareholder engagement
with Boards through disclosure and face-to-face communication
|
Stronger relationship
between Board and shareholders |
The extent of Government
intervention and the need for a balance between regulation
and codes of best practice
|
A focus on best practice
rather than legislation |
