The Cadbury Report, titled ''Financial Aspects of Corporate Governance'', is a report issued by "The Committee on the Financial Aspects of Corporate Governance" chaired by Sir
Adrian Cadbury
Sir George Adrian Hayhurst Cadbury, (15 April 1929 – 3 September 2015) was an English businessman who served as the chairman of Cadbury and Cadbury Schweppes for 24 years. He was also a British Olympic rower. Cadbury was a pioneer in raisin ...
, chairman of
Cadbury
Cadbury, formerly Cadbury's and Cadbury Schweppes, is a British multinational confectionery company fully owned by Mondelez International (originally Kraft Foods) since 2010. It is the second largest confectionery brand in the world after Mar ...
, that sets out recommendations on the arrangement of company boards and accounting systems to mitigate
corporate governance
Corporate governance is defined, described or delineated in diverse ways, depending on the writer's purpose. Writers focused on a disciplinary interest or context (such as accounting, finance, law, or management) often adopt narrow definitions ...
risks and failures. In 1991 the
London Stock Exchange
London Stock Exchange (LSE) is a stock exchange in the City of London, England, United Kingdom. , the total market value of all companies trading on LSE was £3.9 trillion. Its current premises are situated in Paternoster Square close to St Pa ...
set up the Cadbury committee and the report was published in draft version in May 1992. Its revised and final version was issued in December of the same year. The report's recommendations have been used to varying degrees to establish other codes such as those of the
OECD
The Organisation for Economic Co-operation and Development (OECD; french: Organisation de coopération et de développement économiques, ''OCDE'') is an intergovernmental organisation with 38 member countries, founded in 1961 to stimulate ...
, the
European Union
The European Union (EU) is a supranational political and economic union of member states that are located primarily in Europe. The union has a total area of and an estimated total population of about 447million. The EU has often been ...
, the
United States
The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 U.S. state, states, a Washington, D.C., federal district, five ma ...
, the
World Bank
The World Bank is an international financial institution that provides loans and grants to the governments of low- and middle-income countries for the purpose of pursuing capital projects. The World Bank is the collective name for the Inte ...
etc.
Background
Sridhar Arcot and Valentina Bruno in their article called "In Letter but not in Spirit: An Analysis of Corporate Governance in the UK" explain the background to the Cadbury Committee. Although wrong on the historical facts, as
Robert Maxwell
Ian Robert Maxwell (born Ján Ludvík Hyman Binyamin Hoch; 10 June 1923 – 5 November 1991) was a Czechoslovak-born British media proprietor, member of parliament (MP), suspected spy, and fraudster.
Early in his life, Maxwell escaped from ...
died on 5 November 1991 and "The Committee on the Financial Aspects of Corporate Governance" known as "The Cadbury Committee" was set up in May 1991 for other reasons than the Maxwell case,
it gives an interesting reading of the situation at the time:
History lesson: Cadbury 1992
According to The National Computing Centre, 2010:
• Financial Aspects of Corporate Governance
• Division of top responsibilities:
– No one individual has powers of decision
– Majority of independent non-executive directors
– At least three non-executives on the audit committee
(oversee accounting/financial reporting)
– Majority of non-executives on the remuneration committee
– Non-executives to be selected by the whole board
See also
*
Corporate governance
Corporate governance is defined, described or delineated in diverse ways, depending on the writer's purpose. Writers focused on a disciplinary interest or context (such as accounting, finance, law, or management) often adopt narrow definitions ...
*
Hampel Report (1998)
*
Turnbull Report (1999)
*
Higgs Report (2003)
*
Smith Report (2003)
*
King Report on Corporate Governance
*
UK Corporate Governance Code
The UK Corporate Governance code, formerly known as the Combined Code (from here on referred to as "the Code") is a part of UK company law with a set of principles of good corporate governance aimed at companies listed on the London Stock Exchang ...
*
Treadway Commission in the United States
References
Citations
Sources
* History lesson: Cadbury 1992 © The National Computing Centre 2010.
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External links
Report of the Committee on the Financial Aspects of Corporate Governance (the Cadbury Report)
Corporate governance in the United Kingdom
1992 in economics
Reports on finance and business
1992 in the United Kingdom