Business Ethics and Corporate Governance, Second Edition

THE COMBINED CODE, 1998

The Combined Code 4 was subsequently derived from Ron Hampel Committee’s Final Report, Cadbury Report and the Greenbury Report. (Greenbury Report, which was submitted in 1995, addressed the issue of directors’ remuneration.) The Combined Code is appended to the listing rules of the London Stock Exchange. As such, compliance of the code is mandatory for all listed companies in the United Kingdom.

The stipulations contained in the Combined Code require, among other things, that the boards should maintain a sound system of internal control to safeguard shareholders’ investment and the company’s assets. The directors should, at least annually, conduct a review of the effectiveness of the group’s system of internal control ...