Non-Executive Directors in Corporate Governance

Masters
Essay
Miscellaneous
Pages 11 (2761 words)
Download 0
The role and liability of the board and directors has come forward as a crucial matter in probing the reason of high profile crumples like Enron, Parmalat, One.Tel, WorldCom and HIH. This has produced a lot of debate on what the part of the directors is in 'monitoring', 'directing' or 'advising' a company…

Introduction

The need for altering the corporate governance and the accountability of non-executive directors has come forth due to the collapse of a number of high profile corporations ( Carver and Oliver 2002; Cadbury 2002; Vinten 2002; Taylor 2003).
Oman (2001) tried to define corporate governance as the public and private establishments which includes polices, rules and consented business patterns, which based on the economy of the market economy, administer the relationship linking internal stake holders on one hand, and share holders on the other. According to Cochran and Warwick (1988) corporate governance is: "an umbrella term that includes specific issues arising from interactions among senior management, shareholders, boards of directors, and other corporate stakeholders."
'Corporate governance' is seen as a fresh term which has entered our business terminology particularly in the last decade. Nevertheless connecting accountability with corporate governance (Cadbury 1992) is not a recent issue; it has grown with the development of the capitalistic system and growth of world economies (Vinten 2003). The different issues to be considered in this paper are: accountability and the role of non-executive directors with regard to corporate governance and accountability.
According to Sir Arthur Cadbury in his paper (Cadbury 1992, p.15) "Cor ...
Download paper
Not exactly what you need?

Related papers

Company Law - corporate governance
The consequences when the policy of the company makes a director a victim or a loop hole in a law makes the company pay compensation for the victim on behalf of the employee can be examined. The points and the necessities found in the above study can form a back ground for the future changes in the law if any. 1…
Corporate governance board in an organization operates via the different members of board of directors
The aim of this paper is to illustrate the working of corporate governance by means of the literature review. Corporate governance rules are settled by the directors who give rules and regulations for the firm to move it in a specific direction to achieve different goals. Corporate governance actually gives rules for internal control of the firm. This literature review shows different views on…
Assessing Corporate Governance in the Real World
Corporate governance refers to the structure which ensures that the right questions are asked and checks and balances are in place to make sure that the answers to these questions reflect what is in the best interest of the organization for long-term sustainability of value (Minow & Monks, 2008).…
Corporate governance .
They endorse organization plan, come up with directional policy, appoint supervise and pay senior executives they sure transparency of the firm to its authorities and owners. (McCahery, Moreland, Reinboag, Raaijmakers. 2002, 2)…
Corporate governance
management styles with those of the U.S. Many of the largest British multinationals, such as GlaxoSmithKline and BP, have merged with or acquired large U.S. firms, and almost all leading U.K. companies derive substantial proportions of their revenues from the U.S.…
Non-Executive Directors in Corporate Governance
The need for altering the corporate governance and the accountability of non-executive directors has come forth due to the collapse of a number of high profile corporations ( Carver and Oliver 2002; Cadbury 2002; Vinten 2002; Taylor 2003).…
Corporate Strategy and Corporate Governance
Corporate governance is simply a term used for the way that companies (corporate) are run and operated (governed). As stated by Colley et al. (2004) there have been a number of definitions for corporate governance, though, it implies as a misunderstanding of companies and the procedures practiced for the assurance of business proceedings preventing the benefit of involved groups such as the…