UK and US Corporate Governance Frameworks Plan

Overview

This is an evaluation of the different approaches to corporate governance frameworks in the UK and USA. The plan will have three main chapters as outlined below:

Introduction

Make a background look at corporate governance frameworks that were in practice in the UK and the US in the early 90s. Briefly associate these frameworks with the occurrence of corporate scandals in publicly listed corporate organizations.

Statement of the report

Corporate governance evolved in 1990-2002 due to an increase in corporate scandals, with individual countries adopting diverse approaches. The report will analyze their respective frameworks and assess their effectiveness in ensuring the stability of corporate organizations.

The rationale for the study

The UK and the US have different approaches to corporate governance frameworks. This section will highlight:

• The individual country rationale to adopt a different approach to corporate governance despite dealing with similar products and services.
• Occurrence of corporate scandals and failures in the two countries- use Enron and World com to evaluate US corporate governance structure and Barings Bank and Maxwell group to examine UK’s post-2000 corporate governance structure.

Body of the report

This chapter will deal with various corporate governance practices in both countries during 1990-2002. The chapter will deal with the following emerging issues:

1. Introduction to differences in the UK and US market structures- examine the reasons behind these differences in particular examine existing economic policies (Herrigel, 2006; Hamill, McGregor, and Rasaratnam, 2002; Clarke, 2004).
2. Examination of different approaches to regulations adopted by the two countries. Examples of the genesis of different regulations will be discussed in this section (Nordberg, 2009). Discuss the formulation of the SOX Act in response to Worldcom and Enron scandals in the US. Evaluate reasons that led to the collapse of these institutions and assess whether the adopted SOX Act has been effective in mitigating re-occurrence. In addition, assess the criticisms leveled against this Act in the US.
3. An evaluation of the UK’s combined code structure fueled by a successful liberal (open and free-market economy). In this respect, evaluate using examples the strengths and failures of the market structure. In particular, assess the following two institutions and their collapses in respect to the provisions of the market structures:

   1. Baring’s bank- evaluate its collapse in respect to the UK corporate governance structures
   2. Maxwell group
4. An evaluation of increased surveillance on cases especially after the Enron and World com scandals. Discuss current trends in corporate governance structures in both UK and USA (Blair, 1995; Outlaw, 2010).
5. Examination of how various corporate failures in both countries have affected disclosure and transparency practices in the U.K. and U.S. in the 90s and how they affect today’s disclosure policies (Solomon, 2007; Outlaw, 2010).
6. Legal Systems: Reactions to corporate collapse in 1990-2002, within the US and UK, from bodies like Organization for Economic Co-operation and Development (OECD) and Sarbanes-Oxley Act in 2002 (Salacuse and Braker, 2010).

Conclusion

This section will list the major points that were raised within the report concerning the topic.

Bibliography

Blair, M. (1995) Ownership and Control: Rethinking Corporate Governance for the Twenty-first Century. Washington DC: Brookings institute.

Clarke, T. (2004) Theories of Corporate Governance. New York: Routledge.

Hamill, P., McGregor, P., and Rasaratnam, S., (2002) A Temporal analysis of Non-Executive Director Appointments to UK Firms: 1990-2000,’ British Accounting Association 3^rd international conference on corporate governance. Belfast: Queen’s University.

Herrigel, G. (2006) Corporate Governance: History without Historians, handbook of business history. Oxford: oxford university press.

Nordberg, D. (2009) Corporate Governance: Principles and Issues. New York: Sage publications.

Out-Law (2010) The Development of the UK Corporate Governance Code. Out-Law.

Solomon, J. (2007) Corporate Governance and Accountability, 2^nd Edition. Hoboken, NJ: John Wiley & Sons.