Corporate Governance: How To Add Value To Your Company: A Practical Implementation Guide

Title page......Page 2
Copyright......Page 3
Table of contents......Page 4
Preface......Page 12
An Overview of the Book......Page 14
Acknowledgements......Page 16
Section 1 - Tell Me What I Need to Know about Corporate Governance (CG).........Page 18
1 Enhancing Value......Page 20
What exactly is Corporate Governance (CG)?......Page 22
How to make things change......Page 24
Results of compliance......Page 25
2 No CG Recognition - The Company You Keep......Page 28
Recent history fuels anxiety......Page 30
Solution - keeping businesses honest......Page 34
3 Why No CG?......Page 36
4 Basic Concepts......Page 42
Conflicts of interests in business......Page 44
5 Applied Concepts......Page 46
Responsibility......Page 48
Reputation......Page 49
6 Director’s Duties - A Reminder......Page 50
Duties of skill and care......Page 52
Other and emerging legal obligations......Page 53
Company Secretary......Page 54
7 Who are the Other Stakeholders?......Page 56
Suppliers......Page 58
Summary......Page 59
8 The Key Areas Addressed by CG......Page 60
Decision-making powers......Page 62
Directors’ remuneration......Page 63
Financial reporting and auditing......Page 64
Communications between directors and shareholders......Page 66
9 The ACCEPTS™ Method......Page 68
Scoring Chart - ACCEPTS™ Method Instructions......Page 70
Excel® spreadsheet......Page 71
10 Basic Steps......Page 72
What needs to be done?......Page 74
Checklists......Page 75
Section 2 - Detailed Implementation .........Page 76
11 The Board......Page 78
In plain English?......Page 80
What needs to be done?......Page 81
Components in this section:......Page 82
Summary checklists......Page 84
Excel® spreadsheet......Page 85
12 The Chairman and Chief Executive......Page 88
What needs to be done?......Page 90
Components in this section:......Page 91
Excel® spreadsheet......Page 92
13 Board Balance......Page 94
In plain English?......Page 96
What needs to be done?......Page 97
Components in this section:......Page 98
Excel® spreadsheet......Page 101
14 Board Appointments......Page 104
What needs to be done?......Page 106
Components in this section:......Page 107
Summary checklists......Page 110
Excel® spreadsheet......Page 111
15 Board Information......Page 116
In plain English?......Page 118
Components in this section:......Page 119
Excel® spreadsheet......Page 121
16 Board Performance Evaluation......Page 124
Components in this section:......Page 126
Summary checklists......Page 127
Excel® spreadsheet......Page 128
17 Board Re-election......Page 130
In plain English?......Page 132
Components in this section:......Page 133
Summary checklists......Page 135
Excel® spreadsheet......Page 136
18 Board - Rewards (a) Level and Make-Up......Page 140
What needs to be done?......Page 142
Components in this section:......Page 144
Summary checklists......Page 146
Excel® spreadsheet......Page 148
19 Board - Rewards (b) Procedure......Page 152
In plain English?......Page 154
What needs to be done?......Page 155
Components in this section:......Page 156
Summary checklists......Page 158
Excel® spreadsheet......Page 159
20 Accountability (a) Financial Reporting......Page 164
What needs to be done?......Page 166
Components in this section:......Page 167
Summary checklists......Page 168
Excel® spreadsheet......Page 169
21 Accountability (b) Internal Control......Page 172
What needs to be done?......Page 174
Components in this section:......Page 175
Excel® spreadsheet......Page 176
22 Accountability (c) Audit Committee and Auditors......Page 178
What needs to be done?......Page 180
Components in this section:......Page 182
Summary checklists......Page 186
Excel® spreadsheet......Page 188
23 Relations with Shareholders - Dialogue......Page 194
In plain English?......Page 196
What needs to be done?......Page 197
Components in this section:......Page 198
Excel® spreadsheet......Page 199
24 Relations with Shareholders - Constructive Use of the AGM......Page 202
What needs to be done?......Page 204
Components in this section:......Page 205
Summary checklists......Page 206
Excel® spreadsheet......Page 207
25 How Did You Do?......Page 210
A word of encouragement......Page 212
26 What to Do Now?......Page 216
An essential requirement......Page 218
Plan of attack - preparation......Page 219
Plan of attack - the Board itself......Page 220
Plan of attack - the Board Committees......Page 221
Plan of attack - the shareholders......Page 222
Plan of attack the financial reporting and auditors......Page 223
Appendix1 Annual Report – CG Disclosures......Page 226
The Board......Page 228
Board Committees......Page 229
Appendix 2 Matters Reserved for the Board ICSA Guidance Note......Page 234
Appendix 3 The Role of the Chairman......Page 248
Appendix 4 The Role of the Chief Executive......Page 252
Appendix 5 Guidance on the Role of the Non-Executive Director......Page 256
Appendix 6 Sample Letter of Non-Executive Director Appointment......Page 260
Role......Page 262
Outside interests......Page 263
Insurance......Page 264
Committees......Page 265
Appendix 7 Chairman of the Nomination Committee Job Description......Page 266
Appendix 8 Chairman of the Remuneration Committee Job Description......Page 270
Appendix 9 Chairman of the Audit Committee Job Description......Page 274
Appendix 10 Performance Evaluation Guidance......Page 278
Performance evaluation of the Board......Page 281
Performance evaluation of the Non-Executive Director......Page 282
Appendix 11 The Whistle-blowing Procedure......Page 284
Appendix 12 Nomination Committee Terms of Reference......Page 288
Appendix 13 Remuneration Committee Terms of Reference ICSA Guidance Notes......Page 300
Appendix 14 Audit Committee Terms of Reference ICSA Guidance Notes......Page 310
Appendix 15 CG Role of the Company Secretary ICSA Guidance Notes......Page 326
Index......Page 332