Discuss the key elements of the combined code


Comment on the following in your own words:

The Combined Code Some of the key elements of the Combined Code are as follows:

? Every listed company should have a board of directors to lead and control the company.

? There should be a clear division of responsibilities between the chairman and the chief executive officer of the company to ensure that a single person does not have unbridled power.

? There should be a balance between executive and non-executive (who are often parttime and independent) members of the board, to ensure that small groups of individuals cannot dominate proceedings.

? The board should receive timely information that is of sufficient quality to enable them to carry out their duties.

? Appointments to the board should be the subject of rigorous, formal and transparent procedures.

? All directors should submit themselves for re-election at regular intervals, subject to satisfactory performance.

? There should be formal and transparent procedures for developing policy on directors' remuneration.

? The board has a responsibility for ensuring that a satisfactory dialogue with shareholders occurs.

? Boards should use the annual general meeting to communicate with private investors and encourage their participation.

? Institutional shareholders have a responsibility to use their votes.

? The board should publish a balanced and understandable assessment of the company's position and performance.

? Internal controls should be in place to protect the shareholders' wealth.

? Formal and transparent arrangements for applying financial reporting and internal control principles and for maintaining an appropriate relationship with auditors should be in place.

 

 

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Accounting Basics: Discuss the key elements of the combined code
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