Corporate Governance Coursework Example | Topics and Well Written Essays - 1500 words

Corporate Governance - Coursework Example In addition, the 2007 global economic crisis can be attributed to the corporate governance failure to a great extent. This paper will explore the practical strategies which would improve current corporate governance system in UK. Corporate governance The concept of corporate governance underwent tremendous changes from period to period since its origin. Managements always pay attention to update their corporate governance strategy in accordance with the needs of time. The corporate governance policy also maintains the relationship among the stakeholders and the objectives of the organisation (OECD). In case of contemporary business concerns, the external stakeholder groups mainly include shareholders, creditors, suppliers, and customers while board of directors, executives, and employees. Top level mangers always focus on the impact of their corporate governance strategy on economic efficiency in addition to a strong emphasis on shareholder values. Since a series of corporate failure s in 2001 were attributed to accounting fraud, today organisations give focus on internal check policies while formulating their corporate governance strategy. ... The corporate governance practices are largely different across the globe. The Continental Europe’s multi-stakeholder model gives first priority to the interests of workers, customers, managers, and suppliers whereas the Anglo-American corporate governance model mainly recognises the interests of shareholders (Vasilescu, 2008). Continental European countries like Germany and Holland possess two-tiered Board of Directors with intent to improve their corporate governance practices. The main point of difference in corporate difference between United Kingdom and United States is that in UK, the CEO generally does not hold the chairmanship of the board whereas in US, the CEO also serves as the Chairman of Board. Corporate governance in UK In the opinion of Roberts (2011), the balance of power between the board of directors and the general meeting primarily constitutes corporate governance of a UK company. Generally, the term â€Å"governance† is used to refer to principles m entioned in the UK Corporate Governance Code. The UK Corporate Governance Code 2010 is a set of corporate governance principles which aim the improved performance of the listed companies on the London Stock Exchange (Harbottle and Lewis). Financial Service Authority’s Listing Rules demand the public listed companies to disclose how they have abided by the proposed code and explain where and why they have ignored the rule. Private companies are also encouraged to follow these corporate governance guidelines even though it is not a compulsory requirement in private firm accounts. This Code contains a principles-based approach and a rules-based approach; the former provides strategies for best practice while the

Legal Underpinnings of Business Law Assignment Example | Topics and Well Written Essays - 1000 words

Legal Underpinnings of Business Law - Assignment Example The business does not enjoy a distinguished legal entity from the owner of the business otherwise referred to as the entrepreneur in other professional terms. When the business sustains liabilities and debts, the owner is personally liable. Furthermore, if Tinker’s Home Security Service breaches a pre-agreed contract with one of the associates such as a supplier, then the associate has the legal permission to sue the owner of the business and hold him responsible for gross misconduct. Personal assets of the owner among them land, car, home, and other personal possessions are always at risk in case of a lawsuit. In contrast to Tinker’s Home Security Service, the other forms of business namely; Tinker and Tailor’s Home Security Service, LLC (LLC), Tinker and Tailor’s Home Security Service, Inc (corporation), Tinker and Tailor’s Home Security Service (LP), as well as Tinker and Tailor’s Home Security Service (general partnership) have a spate legal entity different from the owners. As opposed to sole proprietorship, if the court of law of legal authority with oversight roles finds any of them liable for gross misconduct, the plaintiff in the case has limited permission to recover from the assets owned by the business. The case is only different where there are exceptions. However, it is essential to identify that in spite of the limited legal freedoms enjoyed by sole proprietorship, it entails several advantages. The only escape through which the owner of Tinker’s Home Security Services can escape unscathed from a law suit is by seeking for the best legal advice. It is crucial especially when the business is defending itself against a lawsuit by a plaintiff in the case. One of the greatest opportunities is that attorneys are not necessary in such scenarios. The success of the case or the defence depends on the presentation of facts and the prevailing circumstances. Seeking professional assistance by the owner of