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.
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).
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.
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