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Audit Independence and Expectation Gap
Audit Independence and Expectation Gap
Development of Corporate
Governance Codes
M a d e b y. S h o h i d u l I s l a m
Presentation on
Development of Corporate
Governance Codes
M a d e b y. S h o h i d u l I s l a m
Development of corporate Governance Codes
In some ways, the concept had existed since the dawn of modern corporations
around the 17th century, when European powers began to expand their dominance
worldwide.
In other ways, corporate governance is new because of the modern idea only
emerged in the latter part of the 20th century.
The code of corporate governance was fully launched in 1998 and was the first to
include the "comply or explain“ concept.
Elsewhere in Europe, attention began to fall on corporate governance in the early
2000s.
In Bangladesh, the code was first issued in 2003.since there Ha
have been three revision 2005,2013 &2018.
Accountability Responsibility
Transparency Managing risk.
Fairness
Is corporate governance code is mandatory?
Company do not have comply with the code, but they must state in their annual corporate
governance reports whether they comply with the code provisions, identify any areas of non-
compliance and explain the reasons for non-compliance.
Participatory
Consistent with the rule of law
Transparent
Responsive
Consensus-oriented
Equitable and inclusive
Effective and efficient
Accountable
The Higgs review does not propose to introduce a legal distinction between
the duties and responsibilities of executive directors and non-executive
directors. however, a clarification of the role of a nonexecutive director was
viewed as being useful. The role is defined under the following headings:
Strategy (to constructively challenge and contribute to the development of a company’s
strategy),
Performance (to scrutinize and report on the performance of management),
Risk (to be satisfied with the reliability of financial information)
People (to have responsibility for determining appropriate levels of remuneration for
executive directors)
Honest and ethical conduct, including fair dealing and the ethical
handling of actual or apparent conflicts of interest; • Full, fair, accurate,
timely and understandable disclosure; • Compliance with applicable
governmental laws, rules and regulations
NYSE rule 78
Exchange rules such as NYSE Rule 78 and certain laws such as the
Commodity Exchange Act prohibit these market makers from collusively
exchanging securities among each other.
The Code of Corporate Governance for publicly listed companies is the first
of a series of Codes that is intended to cover all types of corporations in the
Philippines under supervision of the Securities and Exchange Commission
(SEC).
How many principles does the SEC Code of corporate governance
have?
The Code promotes 16 principles across different corporate governance
subjects, namely: board's governance responsibilities, disclosure and
transparency, internal control and risk management frameworks, cultivating
a synergic relationship with shareholders/members, and duties to
stakeholders.
An SEC code is a three letter code that describes how a payment was
authorized by the consumer or business receiving an ACH transaction. SEC
stands for 'Standard Entry Class'. SEC codes are defined and maintained
by NACHA, the governing body for the ACH network.