Escolar Documentos
Profissional Documentos
Cultura Documentos
discussions, stats, and author profiles for this publication at: https://www.researchgate.net/publication/273060193
CITATIONS
READS
1,245
1 author:
Joseph Ilonga
International University of Management, Namibia
2 PUBLICATIONS 0 CITATIONS
SEE PROFILE
A REVIEW ON CADBURY
REPORT
Prepared By: JST 2014
Introduction
The Cadbury report was once referred to as The
Report of The Committee on the Financial Aspects
of Corporate Governance. The report was published
in December 1992, following the recommendations
of the Cadbury Committee.
Address concerns about the working of the
corporate governance system.
The Committee made it its purpose to address the
financial aspects of corporate governance and out of
this produced a Code of Best Practice.
The Committee
The Cadbury Committee was established in May 1991 by
the Financial Reporting Council, the London Stock
Exchange, and the accountancy profession.
Reasons:
Increasing lack of investor confidence in the honesty and
accountability of listed companies.
Financial collapses of listed corporations.
Auditors who signed off a set accounts which turned out
be a misrepresentation of the facts, and about losing its
self-regulatory role.
Lack of board accountability for such matters as directors
pay.
Corporate Governance
Corporate Governance
Accountability
Fairness
Transparency
Independence
Accountability
Fairness
Transparency
Independence
Solomon, 2007
CONTD..
Fat cats
Stakeholders
Control Environment
Transparent disclosure
Board commitment
Strengths
Not mandatory.
Executive pay and perks.
Internal auditors.
Weaknesses
It was costly to implement as the cost of was
estimated to be at least 10% of the annual audit fee.
The Stock Exchange quickly made it clear that it was
not inclined to delist those companies who refused to
implement the codes, companies were under no
obligation to enforce them
Conclusion