Corporate Governance in Financial Criis

Credit crunch, a term describeed in abundance in the years 2008-2009, was often followed with phrases such as lack of right, inconsistencies in the system, directors’ remunerations; fiscal policies; and lack of transparencies in the system; bankruptcies in jacket crown market, government bailouts, unemployment, and need of better regulations in the news media each(prenominal) over. The financial crisis of 2008-2009 affected people; the International Labour make-up forecasted in early 2009 50 millions jobs would be lost by the extirpate of the year , it affected financial markets; banks had lost to a greater extent than 1 trillion dollars to toxic assets and bad loans by the end of 2009 . One would assume after Enron, the darling of news media in 2001, a crisis of such humongous proportions would be unlikely, not to mention obso allowe. We will get back to Enron later; first let’s understand the term itself that is Corporate Governance. According to the pecuniary Times, it is “How a company is managed, in terms of the institutional systems and protocols meant to plug accountability and sound ethics. The concept encompasses a variety of issues, including revealing of information to shareholders and board members, remuneration of senior executives, potential conflicts of take among managers and directors, supervisory structures, etc.



” The main aim of the Corporate Governance is to align the interests of the individuals, corporations and society (Sir Adrian Cadbury, 1999). It is a vital theoretical tool in handling issues such as principal-agent problems, agency costs associated with it, transparence, accountability of the senior management of the corporations and the risk management practises .The UK Code has been set forth by the FRC as guidelines, there to ensure greater transparency and accountability and prevent any wrongdoing, however there demand to be a strong deterrents (UK Code 2010). The inadequacies lies not with the mechanisms so much as it does with the application of... If you want to get a full essay, order it on our website: Orderessay



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