AVOIDING THE STORM

摘要

Twenty years since the publication of the Cadbury Code, corporate governance is still under the spotlight. This year has already seen the 'shareholder spring' and a catalogue of scandals emerging from the banking sector, from Libor fixing to money laundering. Do we need to face the uncomfortable truth that the UK corporate governance regime is no longer fit for purpose? Are we moving to a scenario where companies will need to be subject to greater rules than ever before - or will we just end up throwing the baby out with the bathwater? Critics of the UK regime tend to focus their attention on the UK Corporate Governance Code, in particular the principle of 'comply or explain' which gives the code its voluntary approach, based on the view that one size does not fit all. However, this is to miss the bigger picture. The code actually represents one component of an overall governance system that encompasses company law, codes of best practice and supplementary guidance.