1 year MBA (1st Semester) Sec : B

Development of Corporate Governance Code:

1. How the CG codes have been driven?

Answer: The corporate governance codes have been driven by a financial scandal, corporate
collapse or similar crisis.
2. What does legal background mean?
Answer: Common law and civil law.
3. What does a cultural & political context mean?
Answer: Democracy and communism.
4. What do you mean by business forms in CG practice?
Answer: Public corporations compared to family-owned firms.
5. For what issues the CG codes has driven?
Answer: The corporate governance codes has issued by a variety of bodies ranging from
committees, through to stock exchange bodies, representative group and professional
bodies.
6. Cadbury Report 1992, Chaired by Sir Adrian Cadbury , known as Cadbury report.
7. What is the main recommendation of Cadbury report?
Answer: The main recommendation of Cadbury report include the establishment of key board
committees with a nomination committees suggested as an appropriate way to ensure a
transparent appointments process.
8. When did the Greenbury Report set out?
Answer: In 1995
9. What was the main concern of Greenbury Report?
Answer: The main concern of Greenbury report is about both the size of directors
remuneration packages and their inconsistent and incomplete disclosure in companies
annual reports.
10.What was the main purpose of the Greenbury Report?
Answer: Disclosure of directors mremuneration packages.
11.The adoption of performance measures linking rewards to the performance of both the
company and individual directors is discussed in Greenbury report.
12.When did the Hample Report set up?
Answer: In 1995.
13.When the Hample report committee did reported their report?
Answer: In 1998
14. Why did Hample report set up?
Answer: To review the implementation of the Cadbury and Greenbury Committee
recommendations.
15.The Hample report stated that the directors as a board are responsible for relations with
stakeholders but they are accountable to shareholders.
16.The involvement of institutional investors & their roles are discussed in Hampel Report
(1998)
17.Who did chair the Turnbull Committee Report?
Answer: Nigel Turnbull
18.Who established this committee?
Answer: The institute of Chartered Accounts in England and Wales (ICAEW).
19.Which report of CG code does ensure the internal control system & its effectiveness?
Answer: The Turnbull Report.
20.Who was chaired the Higgs Review?
Answer: Derek Higgs.
21.The reporting period of Higgs Report is In January 2003.
22.The Higgs review discussed about the role and effectiveness of non-executive directors.
23.Non-executive directors should met as a group at least once a year without the presence of
executive directors.
24.Board members should evaluate at least once a year according to Higgs Report.
25.I n which report the role of audit committee is discussed?
Answer: Smith (2003)
26.Audit committee is appointed by the FRC.
27.OECD refers to The Organization for Economic Cooperation and Development (OECD)
28.When did OECD publish?
Answer: The Principles of Corporate Governance in 1999.
29.What does OECD recognize?
Answer: The OECD recognizes that one size does not fit all.
30.When did the OECD principles revise?
Answer: The OECD Principles revised in 2004
31.What is the CG code for banking organization?
Answer: Basle Committee (1999).
32.How many sound CG principles comprised in 2006 Basle committee issue?
Answer: Eight sound corporate governance principles.
33.The principle of the board’s overall responsibilities, board qualifications are discussed in
Principle for Enhancing Corporate Governance (2010) / Board practices
34.Compensation committee identified two principles relating to the board.
35.Disclosure & transparency principles covers Principle for Enhancing Corporate Governance
(2010)
36.How many principles covered in Principles for enhancing CG Codes 2010?
Answer: Fourteen Principles
37.“The bank should govern in a transparent manner”-which principle includes this in Basel
Committee guidance-2006?
Answer: Principle 7.
38.NGO refers to non-governmental organizations.
39.Board diversity is discussed on Davies reports.
40.Recruitment & development of non-executive directors is discussed on Tyson reports.