United Kingdom Corporate Governance FAQs

What's the difference between a chairperson vs CEO?

January 30th
What’s the difference between a chairperson vs CEO? A chairperson is a senior-level position responsible for providing direction and overseeing the board of directors. This includes setting overall strategy, ensuring…
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What's the difference between a managing director vs CEO?

January 30th
What’s the difference between a managing director vs CEO? The managing director plays a vital role in managing the day-to-day operations of a business or subsidiary. They are typically responsible…
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What is a chairman?

January 30th
What is a chairman? The chairman plays a pivotal role in any company, acting as a leader and the face of the board. The chairperson oversees all operations and acts…
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What criteria must individuals fulfil to become directors in the UK?

September 10th
A director may be an individual or another legal entity (such as a company). If the director is an individual, he or she may hold office provided that:• he or…
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What financial and non-financial information must UK companies disclose to the public?

September 10th
What financial and non-financial information must UK companies disclose to the public? UK companies are required to disclose certain financial and non-financial information, both in general and through their annual…
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How are board members appointed or removed in the UK?

September 10th
Appointing directors Directors are most commonly appointed by shareholders at a company’s Annual General Meeting (AGM), or at an Extraordinary General Meeting (EGM). If a vacancy on the board arises…
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To what extent can a board delegate responsibilities to committees? Are any board committees mandatory?

September 10th
A company’s constitution may allow its directors to delegate responsibility for certain decisions to board committees. Committees often have directors as members, although a company constitution can allow non-directors to…
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In the UK, who makes up a board of directors?

September 10th
Who makes up a board of directors? The composition and selection of a company’s board is set out in that company’s constitution. Articles within the constitution will usually stipulate a…
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What are UK company directors’ duties and responsibilities?

September 10th
A director owes statutory duties to their company under sections 171 to 177 of the UK Companies Act. These duties include the following:acting within their powers, including acting in accordance…
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What are the main principles of UK corporate governance?

September 10th
AccountabilityCorporate accountability refers to a board’s responsibility for providing explanations for a company’s conduct.• The board should present a balanced and clear assessment of the company’s position and prospects• The…
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