Corporate governance as defined in the Cadbury Report, published in the UK in 1992, is the system by which companies are directed and controlled. At the heart of this system is the board of directors who are responsible for the proper running of their companies.
In so doing, the directors have to conform to the rules and regulations of the jurisdictions in which their companies operate and take into consideration the interests of the various stakeholders. The shareholders have the right to appoint the directors and the auditors and ensure that an appropriate governance structure is established. There are mechanisms for shareholders to remove directors and auditors and to fill up the casual...
