0 0 REPORT

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THE

COMMITTEE

ON

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THE

F INANCIAL A S P E C T S
OF

C ORPORATE G OVERNANCE

1

DE

C E M B E R

1992

0 0 REPORT

OF

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COMMITTEE

ON

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THE

F INANCIAL A S P E C T S
OF

C ORPORATE G OVERNANCE

0 1992 The Committee on the Financial Aspects of Corporate Governance and Gee and Co. Ltd.

Reproduction of this publication in whole or in part is unrestricted for internal communications within a given organisation. It is otherwise subject to permission which will not be refused but will attract a reasonable reproduction charge. A leaflet is available from the Publishers setting out full details of the level of the charge and when it is applicable.

First published December 1992

ISBN 0 85258 913 1 (Report) ISBN 0 85258 915 8 (Report with Code of Best Practice)

Gee (a division of Professional Publishing Ltd) South Quay Plaza 183 Marsh Wall London El4 9FS Freephone: (0800) 289520 Fax: (071) 537-2557

Printed in Great Britain by Burgess Science Press.

Queries and correspondence relating to the report should be addressed to: The Secretary Committee on the Financial Aspects of Corporate Governance Up to 31 Decemher~ 1992 P.O. Box 433 Moorgate Place London EC2P 2BJ Tel: (07 I) 628-7060 ext.2565 Fax: (071) 6281874

From 1 Ja/rrrar~y 1 9 9 3 c/o The London Stock Exchange L o n d o n EC2N IHP Tel: (071) 797-4575 Fax: (071) 4.1~0:6822

Additional copies of the report may be obtained from: Gee (a division of Professional Publishing Ltd) South Quay Plaza 183 Marsh Wall London El4 9FS Freephone: (0800) 289520 Fax: (071) 537-2557 Price: &IO.00 per copy, including a copy of the Code of Best Practice. The Code of Best Practice may also be purchased as a separate publication, price fIlO.00 per pack of ten.

PAGE
PREFACE

9
11

TH E

INTRO D llc1‘10 N R EASONS
FOR SETTING UP THE