Cadbury Corporate Governance Analysis

Corporate governance definition: The definitions of the term "governance" differed and varied according to the diversity of researchers and their multiple orientations. The most prominent of the adoption and consideration of corporate governance is the Cadbury Commission in 1992 which defined corporate governance as a system that is managed and monitored by companies. The Board of Directors is responsible for corporate governance. The role of the shareholders in the company is to elect the members of the board of directors and auditors, and to ensure that there is an appropriate governance structure. Board's responsibility includes setting the company's strategic goals, and provide leaders who will achieve these goals, monitoring the management of work, reporting to shareholders during their tenure, ensuring that the board of directors adheres to the laws and regulations and works for the benefit of the shareholders.(Cadbury, 1992) The Organization for Economic Co-operation and Development (OECD) defines governance:" the system that directs and controls the business of the company, which describes and distributes rights and duties between different parties in companies, such as the board of directors and the shareholders, and establishes the rules and procedures that are necessary to take the

1-2). Strenbreg defined corporate governance as "the way that ensures effective guidance for the decision-making process, that increases the value of the company to the owners" (2004, p. 28). Cornelius (2005) defined it as the responsibility of supervising of corporate managers to provide their control over the objectives and strategies of the company and to promote its