ICAEW SE · Chapter 7 · Question 4 of 18
The UK Cadbury Report (1992) gave a widely used definition of corporate governance. What is it?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) The system by which companies are directed and controlled
Explanation
The Cadbury Report defined corporate governance as 'the system by which companies are directed and controlled'. Boards of directors are responsible for the governance of their companies, and shareholders appoint the directors and auditors to satisfy themselves that an appropriate governance structure is in place.
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