Corporate Governance in UK Assignment Example | Topics and Well Written Essays - 1500 words

bodily presidency in UK - Assignment ExampleThe paper throws light on corporate managements that al fashions work on corporate nerve strategies so as to satisfy the increasingly changing market trends. The corporate governance form _or_ system of government also helps to manage the interrelationship between stakeholders and the organisations fundamental objectives which shape the way the firm operates. The top management is always eager to know whether its corporate governance policy is efficacious enough to meet the sh areholder values even though the management also focuses on impacts of the policy on the firms operational efficiency. Nowadays corporate governance frameworks specifically target midland check policies as a series of corporate failures in 2001 were ascribed to accounting fraud. In addition, corporate scandals of motley forms throughout the last decade attainted public and political interest. Consequently, managements adopted more regulative approach towards t he festering and execution of corporate governance practices. As Laura points out, Continental Europes multi-stakeholder model specifically emphasises on the interests of workers, customers, managers, and suppliers whereas the Anglo-American corporate governance model values shareholder interests. However, every organisation takes into account the rights and privileges of its shareholders while close in its corporate governance policies. In addition, a corporate governance framework clearly states the roles and responsibilities of the board of directors, single and ethical standards of the organisation, and concerns of disclosure and transparency. It is observed that corporate governance practices vary from organisation to organisation and country to country. Corporate governance laws Corporate governance laws in UK clearly define rights, powers, and duties of directors, managers, and auditors, and the position of stakeholders including employees and communities in which companie s operate. Since board of directors are the persons at the helm of affairs of a company, the corporate governance policies intent to establish a implement to ensure their accountability. According to Fairley (2010), the UK corporate governance law is shareholder friendly and it allows shareholders to enjoy their sole vote rights in the general meeting. Likewise, directors possess a series of basic rights including issue of resolutions and removal of board members. At the same time, directors have also a set of duties to be carried out toward their company. Directors are obliged to control out their duties and responsibilities with competence, in good faith, and strong loyalty to the organisation. If the voting mechanisms seem to be inadequate to meet the interests of shareholders, directors rights may be questioned in a court of law. The UK Takeover Code protects the interests and rights of shareholders to a great finis and assists