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Chapter 3

The development of corporate

governance codes

Report Focus Outcome

Cadbury (1992) Board of directors Chairman/CEO role should be split,
and Chairman independence
necessary

Institutional investors Need for greater dialogue

Audit and accountability Good communication and disclosure

Formed part of stock exchange listing rules – comply or
explain.

Greenbury (1995) Directors' remuneration Reporting balance between salary
and performance

Hampel (1998) Deal with criticisms of Consolidation in a Combined Code
previous reports

Turnbull (1999) Need for directors to Framework for establishing systems
review internal control of internal control
systems and report on
them

Higgs (2003) Role of non-executive Specific guidelines regarding NEDs
directors (NEDs) and their role

Tyson (2003) Recruitment and Additional guidance
development of NEDs

Smith (2003) Auditors and audit Relationship between auditors and
committee the company and the role of the audit
committee

Sir David Walker Complete review of The Code was found to be ‘fit for
& the FRC (2010) Corporate Governance purpose’ and the name changed to
following the financial ‘UK Corporate Governance Code’
crisis 2008 – 2009

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