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Chapter 11 3 4

Corporate Governance Code

The UK Corporate Governance Code provides the following guidance.

Corporate
Governance Code

Relations with
Leadership Accountability
shareholders

Effectiveness Remuneration

2.1 Leadership

 Each company should have an effective board who take collective responsibility
for the long term success of the company.

 There should be clear division of responsibilities between running the board and
the running of the company.

 No one should have unfettered powers of decision.

 The chairman should lead the board and ensure it is effective.

 Non-executive directors should constructively challenge and help develop
strategy.

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