The Role of Corporate Governance Mechanism of Independent Directors.

The Role of Corporate Governance Mechanism of Independent Directors. Essay example
Masters
Essay
Finance & Accounting
Pages 9 (2259 words)
Download 0
The Role of Corporate Governance Mechanism of Independent Directors.
In this paper the mechanism of independent directors under the guidelines of Corporate Governance will be analyzed to see how effectively it was designed and how well it has been implemented in the real life.

Introduction

The mechanism suggests that the Board of Directors should comprise of an equal numbers of executive and non-executive (independent) directors. Executive directors are responsible for the management of the company’s operations whereas the non-executive directors, which are appointed by the shareholders, are responsible for the supervision of the executive directors’ performance as a whole. Under the framework, the independent directors are responsible for setting up board committees, which govern the performance of the board. These committees include audit committee, remuneration committee and nomination committee. The audit committee supervises the reporting of the financial statements between the management and the shareholders of the company, remuneration committee is responsible for devising remuneration packages for the executive directors of the board after considering their performance and the nomination committee is responsible for nominating directors that can become the part of the board after elected by the board of directors. This whole framework is then observed in the real life examples of various organizations in UK, so as to see how effectively the mechanism has been applied and how well it is performing in achieving the main purpose of the framework.
...
Download paper
Not exactly what you need?

Related papers

Quality of corporate governance within an organization (Shell Company) and the impact on organization’s key stakeholder
For a company to remain competitive it must practice good and quality governance principles so as be innovative and be able to adapt in order to meet new demands from its customers and grasp new opportunities that may arise in the market. Corporate behavior is known to influence behavior of shareholder who is owner of equity in the company. Use of quality corporate governance principles by the…
Corporate governance
There is no set definition of corporate governance and mostly depends upon the specific country’s view and oversight of the issue. Generally, it is known as a system of rules and principles as to how an organization should be governed and controlled. The roots of corporate governance lie in ‘Agency Theory’, which explains the problem of principal-agent. The managers or agents are bestowed…
How do UK companies' Mechanisms Affect and Help their Corporate Governance
Throughout the entire period in fulfilling the objectives of this dissertation, I was greatly blessed with his extensive guidance and supervision over my work. I cannot complete this part without saying ‘thank you, sir’. Subsequent to that, my colleagues and friends who also played their part have extended their hand for my project; the successful culmination of this dissertation has also…
What is the state of corporate governance in the UK, USA, EU, Australia, Japan and the GCC countries?
It a discipline that focuses mainly on existing relationships between a company’s top management, its stockholders, boards, regulators, other stakeholders and auditors, and is a “system by which companies are directed and controlled” (Corporate Governance, nd., p.11). The system takes into account various market and regulatory structures, while also considering objectives for governing…
Finance and accounting: Governance, Accountability and Audit
The characteristic of corporate governance in the United Kingdom is based on ‘comply or explain’ approach i.e. either organisations’ need to comply with the existing code or need to explain new code to government authorities. The compliance with the board related recommendations of the UK Code of Corporate Governance is expected to minimise the agency problems and to enhance the performance…
International corporate governance
he corporate sector of Australia has previously been regarded to hold the same core features as those of the United States and the United Kingdom.7 These issues will be discussed thoroughly in the later sections.
CORPORATE OWNERSHIP, GOALS, and GOVERNANCE
Blair looks at the rights of owners and concludes that shareholders do not have sufficient rights to be called the corporate owners. The article details the rights that owners have such as the right to acquire and dispose off assets and a right to get profits generated by the asset and its sale. The article claims that shareholders do not possess all these rights instead it is distributed to…