corporate governance

corporate governance
The manner in which organizations, particularly limited companies, are managed and the nature of accountability of the managers to the owners. This topic has been of increased importance since the publication of the Cadbury Report (1992), which sets out guidance in a Code of Practice. There is a stock-exchange requirement for listed companies to state their compliance with this Code; a number of companies now provide information on corporate governance in their annual report and accounts. A Combined Code on Corporate Governance providing guidance and good practice suggestions for managers was published by the Financial Services Authority in July 2003.

Accounting dictionary. 2014.

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