THE ORIGINS OF 'COMPLY OR EXPLAIN'

摘要

In 1992, in response to a series of scandals, the United Kingdom introduced what is believed to be the first code setting out best practice in corporate governance. Known as the Cadbury Code, it introduced a new regulatory concept known as "comply or explain", under which companies have the option either to follow best practices or to explain to their shareholders why, in their view, these were not appropriate in the company's particular circumstances.