1 Executive Summary
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.
2 Introduction
G4S plc is a security services company founded in the UK in 2004, it is merged by the UK-based Securior plc and the Denmark-based Group 4 Falck. It is operates in more than 120 countries (G4S, 2013) which makes it the world’s largest security company. There are two key service lines in G4S – Secure solutions (coordinate with commercial organisations, providing security solutions such as risk consulting, manned security and security systems, as well as a range of security services, including the protection of critical national infrastructure, care and justice services, integrated facility services and border protection in the field of integrated security solutions for the government) and cash solutions (outsourcing of cash cycle management for central banks, financial institutions and retailers) (G4S, 2013).
G4S is primary listed on the London Stock Exchange and secondary listed on the NASDAQ OMX exchange in Copenhagen (G4S, 2013).
In the UK, instead of setting up strict regulations to enforce companies to follow when deciding their corporate governance, there is a UK Corporate Governance Code which...
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...ntracts (The Guardian, 2013). To be a responsible company, G4S should be prepared to answer any questions raised by shareholders and the public and respond to demands for greater transparency to the public.
7.4 Appointment on Board Directors
According to the company’s Article of Association, directors of the G4S submit themselves for re-election at least every 3 years and that at least one-third of the directors not standing for election for the first time stand for re-election at each AGM (G4S 2013). However, the Code provision required all the continuing directors should stand for re-election at the coming AGM (FRC, 2012).
8 Conclusion
The corporate governance arrangements of the G4S plc is mostly complied to the UK Corporate Governance Code, although the company still need to make improvements, the corporate governance arrangements are generally acceptable.
JB Hi-Fi’s current corporate governance practices will be explored using the ASX Corporate Governance eight principles and recommendations. These eight principles will be further analysed and supported using legislation, theories, concepts, company examples and case studies. By analysing JB Hi-Fi through all of the means discussed, this report will demonstrate areas of success and development. Furthermore, recommendations will be made to improve current corporate governance practices in order for JB Hi-Fi to further demonstrate leading ways in corporate governance practices.
The corporation’s business is carried out by its management, under the direction of the Board of Directors. The Board, and each committee of the Board, has complete access to management. Also, the Board and committee member’s has access to independent advisors as each considers necessary or appropriate. Mallor, Barnes, Bowers, & Langvardt (2010) state that the Board of Directors also, issues shares, Adopts articles of merger or sha...
There are at least three areas that encompass ‘weak corporate governance’, 1. Multiple Prime Ministers from different parties 2. Inconsistent and ineffective policies and 3. Leadership.
As a team we routinely provide complete security services including: assessments, penetration tests, policy creation and regulatory compliance assistance. Currently we have two ongoing contracts to provide managed security
Therefore the British American Tobacco plc has to share its financial information to its external stakeholders such as banks and those who has the right to see the information. Before getting into detail on financial reporting and what that entails it is essential to understand who exactly those external stakeholders are. External stakeholders are composed of investors, lenders, supplier and customers, Government agencies, competitors and labor unions, supporters are and opponents, just to name a few. These are essentially people or companies that may have interest in what goes on with known businesses or companies. Stakeholder’s main interest are profit growth and dividends because their goal is to get a return on the money they have invested. “Investors are stakeholders that buy shares in a company.
The Corporations Act 2001 (Cth) (the Act) places great emphasis on good corporate governance. Along with the rights and powers conferred by the Act, directors are also subject to a wide range of duties that are owed to the company, including members and shareholders. The duties mentioned in the Act occur concurrently with the general law duties. In order to ensure compliance with the legislation, the Act has implemented the use of civil penalty provisions to target the perceived shortfall of the previous methods of corporate law administration. Actions for contravention can only be brought forth by the Australian Securities and Investments Commission (ASIC) in its role as watchdogs of corporate law.
Corporate gorverance as a system are directed and controlld by companies. Initially, their board of directors should take responsible for the gorverance of companies, which include setting strategic aims of companies , guarantee an effective leadership, supervising the proformance of business management and reporting on it to shareholders. The board's action should comply with the law, regulations and shareholders. In addition, the shareholders also play an important role in gorverance and they have right to decide who can be employed as the companies' directors and auditors to provide good governance structure for them. Therefore, corporate goverance can be regarded as what the board of a company does and how it sets the values of the company.
The group has extensive global network of over 48 offices covering about 32 countries and territories around the world. The group's network extends outside Asia and into other markets like North America, Europe and South Africa. The group sources from around 10,000 internal supplies. Global network enables the group to source its goods from various locations and distribute it in different countries mitigating its exposure to any particular economy.
As a consequence of the separate legal entity and limited liability doctrines within the UK’s unitary based system, company law had to develop responses to the ‘agency costs’ that arose. The central response is directors’ duties; these are owed by the directors to the company and operate as a counterbalance to the vast scope of powers given to the board. The benefit of the unitary board system is reflected in the efficiency gains it brings, however the disadvantage is clear, the directors may act to further their own interests to the detriment of the company. It is evident within executive remuneration that directors are placed in a stark conflict of interest position in that they may disproportionately reward themselves. The counterbalance to this concern is S175 Companies Act 2006 (CA 2006) this acts to prevent certain conflicts arising and punishes directors who find themselves in this position. Furthermore, there are specific provisions within the CA 2006 that empower third parties such as shareholders to influence directors’ remuneration.
Bibliography: Turnbull, S. (1997). Corporate governance: its scope, concerns and theories. Corporate Governance: An International Review, 5 (4), pp. 180--205.
The end of 2001 and the start of 2002 saw the end of a period of magnified share prices and booming businesses. All speculations of misrepresentation came to light and those firms which once seem unconquerable were now filing for bankruptcy. Within this essay, I shall discuss the corporate governance mechanisms and failures which led to the Enron scandal resulting in global corporate governance reforms being encouraged.
For setting directors’ remuneration, the board must form a Remuneration Committee. A prior approval from the shareholders of the members on the committee is recommended. However, when it is not possible for solid reasons, the members must be presented in the AGM to the shareholders for approval if they are already appointed. The following guidelines must be followed:
Nottingham Trent University. (2013). Lecture 1 - An Introduction to Corporate Governance. Available: https://now.ntu.ac.uk/d2l/le/content/248250/viewContent/1053845/View. Last accessed 16th Dec 2013.
According to Carol Padgett (2012, 1), “companies are important part of our daily lives…in today’s economy, we are bound together through a myriad of relationships with companies”. The board of directors remain the highest echelon of management in any company. It is the “group of executive and non-executive directors which forms corporate strategy and is responsible for monitoring performance on the behalf of shareholders” (Padgett, 2012:1). Boards are clearly critical to the operation of companies and they are endowed with substantial power in the statute (Companies Act, 2014). The board is responsible for directing and steering the company. The board accomplishes this by business planning and risk management through proper corporate governance.
The Role of the Directors in a Company is of a paramount importance in the discourse of the proper running of the company. Directors are the spirit of the company .The company is merely a legal entity, governed by its directors. These directors have certain duties and responsibilities. These are mainly governed by the Corporation Act, 2001. Section 198A (1) of The Corporations Act, 2001(The Corporations Act 2001 s 198A (1)), clearly states that, ‘The business of a company is to be managed by or under the direction of the directors’.