Corporate Governance: Examining the UK and USA Codes

Purpose of Codes and Who they Protect

Case Study

Essay number one which should be submitted through Turn it In on Blackboard before 23.59 on 4th March will be an individual piece of work based on a case study this case study will follow the style of the many others we will have studied and the Essay content will be indicated by the type of commentaries I will have provided to you for each case study.

You are welcome to submit drafts for my comments but make sure you do so ten days before the final hand in date if you want to be sure that I will be able to comment to the extent we would both like.

Course Work Brief                                                    Indicative mark  %  

          
                                                                                        Scheme (guidance only)

Write your work as a Report                                                          5

Consider the purpose of the Codes and who they are
 designed to protect                                                                        10

Critically consider the problems the codes seek to
 Overcome                                                                                         50

Make a critical comparison of strengths and 
weaknesses of the U.K and U.S.A, codes.                                     15

Consider problems faced in the implementation 
of a code by organisations                                                               10

Problems Corporate Governance Codes Seek to Overcome

Provide a conclusion, this does not have to state that
 one approach is better than another but it may. 
In the conclusion summarise problems and solutions
where you think solutions exist,                                                     10

Total                                                                                                    100%

This mark scheme is not at all absolute as all the matters of concern in this course work are interwoven, none of them can be considered in isolation.  Marks will be earned for well expressed knowledge and understanding however displayed.

Corporate Governance Course Work One To be uploaded by “Turn it In You have been asked by an investor group to explain to a recently appointed main board director of “Your Home PLC” why he should co-operate in maintaining and improving corporate governance. Your Home PLC is the 250th company by size listed on the London Stock Exchange and its shares are widely held by individuals and institutions.  is a highly competent architect with experience in getting planning permission for new projects but has never been a director of a UK based company before.  

Having met him and introduced yourself he tells you “I do not see why we need to follow this UK code of corporate governance. I understand that you can just forget what it asks for and explain that none of its requirements apply to your company “Comply or  explain” they call it I think. I do not know why anyone bothers to comply I have been told that things are a lot more rigorous in the USA and I do not see the point of avoidable regulations as you have here, what’s the point? Furthermore why have a non-executive Chair when you already have a C.E.O.?” You realise that the kind of person who likes to argue and as it is important to gain his willing co-operation you decide to give him a thorough explanation of the requirements and purposes of corporate governance in both the U.K. and the U.S.A. You also realise that although he is difficult he is not stupid so in your explanation you will have to point out what could be seen to be weaknesses as well as strengths in each system.

Required

Write a report to Mr Yellin critically examining key aspects of the different codes in the U.S.A. and the U.K.  and the arguments  for and against each of them, respond to his comments relating to non-executive chairmen and women” There is no word limit as such but as a guide 1500 words should be enough. This is a suggested limit and if you have more to say do say it, at the same time this is a suggested limit not a target so if you can use fewer words that is quite acceptable.