Discuss why a listed company disregard implementing good practice

Part 2

“Boards of directors are responsible for the governance of their companies. The shareholders’ role in governance is to appoint the directors and the auditors and to satisfy themselves that an appropriate governance structure is in place.’ This remains 2 true today, but the environment in which companies, their shareholders and wider stakeholders operate continues……….. Nevertheless, the debate about the nature and extent of the framework has intensified as a result of financial crises and high-profile examples of inadequate governance and misconduct, which have led to poor outcomes for a wide range of stakeholders. At the heart of this Code is an updated set of Principles that emphasize to develop rapidly.’ UK Corporate Governance Code (2018) However, an alternative description is that “…. too often companies, who are not compliant with the Code, do not declare non-compliance but offer vague explanations, and continue this pattern year on year.”

Discuss why a listed company disregard implementing good practice; and critically evaluate whether the leadership of the company is fully committed to good governance and transparency. What actions it must take to mitigate the impact of not following the Code? (30 marks)