Compose a 2250 words assignment on critical evaluation of the impact of the combined corporate governance code. Needs to be plagiarism free! Mitchell and Sikka (2005 p. 2) argue that “Company executives play their selfish games, enriching a few and impoverishing many. shareholders, employees and consumers are routinely ripped-off, sold worthless pensions, endowment mortgages and other financial products.” They further accuse corporations. being playthings of their bankers, directors, lawyers and accountants that are accountable to nobody. They suggest that corporations are practicing corporate governance that is bad and being accountable to society in such ways:
Therefore, because of the aforementioned issues, there are need-bringing companies under democratic control. However, the very governments and pressure groups that are supposed to enforce this are unwilling, unable, or have been bought off. Thus, because of unaccountable corporate power, the fabric of society, family structures, and quality of life have been damaged. Therefore, it is because of these issues and their escalations there has been a recent upheaval of the law concerned with the duties of directors in the UK. 3The directors are required to be accountable for their duties as far as the affairs of their corporations are concerned through a number of mechanisms (Taylor, 2010). Thus, failure to fulfill these duties, directors can be held liable and ultimately be prosecuted in courts of law.
After a couple of years, the duties of directors of companies were enshrined in the rules of common law & equitable principles. The Companies Act 2006 (chapter 2 of part 10) however, has been codified and is now acting as the guide for a couple of management tasks of directors upon, which they are held liable if they fail to act properly. This came into effect on 1 October 2007 or 2008 when the financial life of almost all parts of the world was in turmoil. Sahlman, (2010) states that most actions of directors actually contributed to the financial crisis.