Part 1
The UK Stewardship Code 2020 defines stewardship as
”the responsible allocation, management and oversight of capital to create long-term value for clients and beneficiaries leading to sustainable benefits for the economy, the environment and society.”
To what extent do you feel that UK Institutional Investors properly fulfil this
definition? (30 marks)
Part 2
‘As part of their role as members of a unitary board, non-executive directors should constructively challenge and help develop proposals on strategy…. Non-executive directors should scrutinise the performance of management in meeting agreed goals and objectives and monitor the reporting of performance. They should satisfy themselves on the integrity of financial information and that financial controls and systems of risk management are robust and defensible. They are responsible for determining appropriate levels of remuneration of executive directors and have a prime role in appointing, and where necessary removing, executive directors, and in succession planning.’
UK Corporate Governance Code (2018)
However an alternative description is “board composition in the UK is a near identical cast of yes men”
Discuss which of these definitions correctly summarises the role of NEDs in UK business? (30 marks)
In both questions 1 & 2 illustrate your answers with examples from recent business practice
Part 3
Since the UK Code of Corporate Governance was updated in 2018 there have been more major failings in how some large companies in the UK are managed. Looking at how other countries manage this area of business, how do you think the UK system could be improved? Again use examples to support your case.
