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CS Professional · Environmental, Social and Governance (ESG) - Principles and Practice · Conceptual Framework of Corporate Governance

After a spate of corporate failures, a committee in the UK in 1992 recommended that boards separate the roles of chairman and chief executive and form audit committees, on a 'comply or explain' basis. Which report is this?

This is the Cadbury Report of 1992 from the UK. It was formed after corporate scandals and recommended a Code of Best Practice, separating chairman and chief executive roles, setting up audit committees and following a comply-or-explain approach, which influenced governance codes worldwide.

  1. ACadbury ReportCorrect
  2. BSarbanes-Oxley Report
  3. CKumar Mangalam Birla Report
  4. DOECD Principles Report

Explanation

The Cadbury Committee (1992) in the UK produced the Code of Best Practice built on comply-or-explain, recommending separation of chairman and CEO roles and audit committees. The Birla report is Indian (SEBI, 1999), and Sarbanes-Oxley is a US statute, not a UK committee report.

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