Corporate Governance: The Stafford Hospital

Corporate governance is the way in which a company is directed and lead through certain rules, practices and processes. Corporate governance goes hand in hand with King Codes. This is all about Accountability and Transparency. Before 1994 there was no governance.

The good corporate governance is regulated by the Australian Securities and Investment Commission (ASIC), which include specific director's duties that director must follow to enhance the well practice within the

The company that I choose is Alloy Resources Limited, which is an ASX-listed company with projects in Australia and New Zealand. It has implemented 8 principles of ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations. Below are 6 principles among the 8.

This report is going to examine the corporate governance arrangements for G4S, one of the FTSE 100 companies. In this report, research and evaluate of the corporate governance arrangements for G4S will be done by analysing how G4S complies with the UK Corporate Governance Code (‘the Code’) in five main sections of the Code, namely Leadership, Effectiveness, Accountability, Remuneration and Relations with shareholders. At the end of this report, recommendations will be made include the problem of staff diversity, risk management, relations with shareholders and the appointment on board directors.

In today 's society, rapid economic development, a good business to have their own ways of doing business, but also to follow some rules to better manage the company. This report concentrates on the UK Corporate Governance Code and and its analysis of the driving force of Code. Especially in the UK and global analysis of the driving force behind the development and discussion of corporate governance in the US due to different methods. In particular, its characteristics and rules-based approach to corporate governance, each type of system is how to control.

The Cadbury codes were first introduced in 1992 as an answer to the agency and principle agent theories as well as financial reporting issues. In essence, the theory states that the principles (shareholders) objective is to maximize profit, whereas the agents (board of directors) objective is to maximize managerial utility such as sales and growth. This separation of control means that shareholders interests are not being satisfied as growth is funded by profit in the form of retained earnings and/or dividend distribution. Therefore, it can be seen that the objectives for the board cannot be satisfied without sacrificing shareholder 's interests. With the introduction of the code, Cadbury claims that with better corporate governance a company will achieve better performance and in turn promote shareholder interests. This being corporate governance is defined as “the system by which companies are directed and controlled”. Therefore, in theory, if a company is able to achieve good governance the principle-agent model will be nonexistent and shareholders will be satisfied. In order to follow the code, a company must have experienced and independent non-executive directors, no duality, and have an audit, remuneration, and nomination committee. However, numerous empirical studies have found no link between these aspects and good performance. The way in which the code is regulated comes in the form of comply or explain. In essence, this means that organizations are not legally

The ASX Corporate Governance Council defines corporate governance as “the framework of rules, relationships, systems and processes within and by which authority is exercised and controlled in corporations” (ASX 2007 p3). The latest ASX Corporate Governance Council report (ASX 2007) articulates eight core principles, which the report states are of equal importance. Although primarily targeted at listed companies, the ASX principles are being taken into account by other types of organisations

The basic principles of effective corporate governance are threefold; these are transparency, accountability and internal control:

Good “corporate governance" is synonymous with “good business management”, that reinforcing surveillance systems, management and administration of a company, making them efficient, effective, honest, transparent and democratic. A company with high quality management will have access to financing (public or private) in better conditions and terms. Make appropriate business decisions to reach a higher level of accounting transparency, more efficiently manage business problems, and gives people, who are not involved in decision making, guaranteed that their interests are well protected. But the most important, perhaps, it is a good implementation of "corporate governance" will be translate into a company more ordered, correctly planning of their strategies and objectives, in addition to strength, liquidity and highly competitive.

Research in regards to the best practices of corporate governance and the impact of the accounting profession in the corporate governance process within the UK public companies was carried out. The methods used to carry out research for this report were, e-journals, books, government/corporate reports and the Internet. The vast majority of these research methods were obtained from the University of Wolverhampton’s Learning Centre as well as their online cataloguing system. Information in relation to corporate governance in the UK Public Companies was also acquired from lecture notes provided by the lecturer on WOLF.

Corporate governance as it stands appears to be fundamental to all entities across the board whether they are commercial entities or not for profit organisations as they are all affected by the principles of corporate governance.

The purpose of this report is to illustrate what corporate governance is and the problems that are found within the governance. This report will also analyse what agency theory is and why they recommend an independent board structure and the use of equity-based compensation to resolve the corporate governance problem.

Corporate Governance delivers the guidelines as to how the organisation can be directed and controlled (Cadbury, 1992) . The corporate governance role is not concerned with the day to day business of the company, their main duties associated with giving overall direction to the company that can fulfil organisational goals and objectives (Tricker, 1984). Interestingly Walker Review (2009) defined, the role of corporate governance is also to protect and develop the interest of stakeholders by setting up a strategic direction (Walker, 2009)

In the public sector the obligation of internal audit implementation is regulated by acts and regulations such as,

Corporate Governance is defined as a set of systems, processes and governing principles that guarantee that a company is in the best interest of all stakeholders. The system by which companies at casual children and also to promote a controlled and corporate equity, Transparency and Accountability. As an alternative to the "good corporate governance" is simply "a good business."