Corporate Governance

____________________________What is Corporate Governance?

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Investopedia defines Corporate Governance as follows:

"Corporate governance is the system of rules, practices, and processes by which a firm is directed and controlled. Corporate governance essentially involves balancing the interests of a company's many stakeholders, such as shareholders, senior management executives, customers, suppliers, financiers, the government, and the community.

Since corporate governance also provides the framework for attaining a company's objectives, it encompasses practically every sphere of management, from action plans and internal controls to performance measurement and corporate disclosure. "

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_____________________________Financial Reporting Council

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The Financial Reporting Council (FRC) of the UK has developed guidance to support Corporate Boards and Executive Management develop and manage a strong governance framework, controls and culture.

"The FRC is responsible for promoting high quality corporate governance and reporting to foster investment. We set the UK Corporate Governance and Stewardship Codes as well as UK standards for accounting, auditing and actuarial work. We represent UK interests in international standard-setting. We also monitor and take action to promote the quality of corporate reporting and auditing. We operate independent disciplinary arrangements for accountants and actuaries, and oversee the regulatory activities of the accountancy and actuarial professional bodies."

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FRC - Corporate Governance

"The FRC’s mission is to promote transparency and integrity in business. The FRC sets the UK Corporate Governance and Stewardship Codes and UK standards for accounting and actuarial work; monitors and takes action to promote the quality of corporate reporting; and operates independent enforcement arrangements for accountants and actuaries. As the Competent Authority for audit in the UK the FRC sets auditing and ethical standards and monitors and enforces audit quality."

Link: UK Corporate Governance Code

Link: Improving the Quality of Comply or Explain

Link: UK Stewardship Code

FRC - Board Effectiveness

"The Guidance is intended to stimulate thinking on how boards can carry out their role most effectively and is designed to help boards with their actions and decisions when reporting on the application of the Code’s Principles."

Link: Guidance on Board Effectiveness

FRC - Audit Committees

"The FRC Guidance on Audit Committees (PDF) was first published in 2003 and most recently updated in April 2016. It is intended to assist company boards when implementing Section C.3 of the UK Corporate Governance Code dealing with audit committees, and to assist directors serving on audit committees in carrying out their role."

Link: Guidance on Audit Committees

"To assist audit committees looking to put their external audit out to tender the FRC has provided a"

Link: Best Practice Guide to Audit Tendering

OECD - Corporate Governance

The G20/OECD Principles of Corporate Governance help policy makers evaluate and improve the legal, regulatory, and institutional framework for corporate governance, with a view to supporting economic efficiency, sustainable growth and financial stability.

Link: G20/OECD Principles of Corporate Governance

OECD - Transfer Pricing

" The OECD Transfer Pricing Guidelines provide guidance on the application of the “arm’s length principle”, which is the international consensus on the valuation of cross-border transactions between associated enterprises."

Link: OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations 2022

Corporate Governance

____________________________What is Corporate Governance?

_____________________________Financial Reporting Council

FRC - Corporate Governance

FRC - Board Effectiveness

FRC - Audit Committees

FRC - Audit Committees

_____________________________Organisation for Economic Co-operation and Development (OECD)

OECD - Corporate Governance

OECD - Transfer Pricing