The UK Corporate Governance Code

The purpose of corporate governance is to facilitate effective, entrepreneurial and prudent management that can deliver the long-term success of the company.

The first version of the UK Corporate Governance Code (the Code) was produced in 1992 by the Cadbury Committee.

Corporate governance is about what the board of a company does and how it sets the values of the company. It is to be distinguished from the day to day operational management of the company by full-time executives.

The Code is a guide to a number of key components of effective board practice. It is based on the underlying principles of all good governance: accountability, transparency, probity and focus on the sustainable success of an entity over the longer term.

The Code has been enduring, but it is not immutable. Its fitness for purpose in a permanently changing economic and social business environment requires its evaluation at appropriate intervals.

The new Code applies to accounting periods beginning on or after 1 October 2014 and applies to all companies with a Premium listing of equity shares regardless of whether they are incorporated in the UK or elsewhere.

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ResourceID: 72364

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