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CS Professional · Environmental, Social and Governance (ESG) - Principles and Practice · Governance Influencers

Aarav Pharma Ltd is drafting a governance code for its board. The chairman suggests adopting the approach that originated in the UK in 1992 and recommended separating the roles of chairman and chief executive, using non-executive directors and an audit committee. Which report is he referring to?

He is referring to the Cadbury Committee Report of 1992 in the UK. It recommended separating the chairman and chief executive roles, using non-executive directors and constituting audit committees. Sarbanes-Oxley is a US law of 2002, the Birla Committee is Indian, and Greenbury concerned executive pay.

  1. ACadbury Committee ReportCorrect
  2. BSarbanes-Oxley Act
  3. CKumar Mangalam Birla Committee Report
  4. DGreenbury Report on executive pay

Explanation

The Cadbury Committee of 1992 in the UK, formed after corporate failures, recommended splitting chairman and CEO roles, non-executive directors and audit committees. Sarbanes-Oxley is a US statute of 2002. The Birla Committee is Indian, from 1999. Greenbury dealt with executive pay.

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