Corporate Governance- Doc

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CORPORATE GOVERNANCE
Table of ContentsSECTION A.....................................................................................................................................12) Tokyo Electric power..............................................................................................................1Theory..........................................................................................................................................1Issue.............................................................................................................................................1Section B..........................................................................................................................................21...................................................................................................................................................2Case issue.....................................................................................................................................2PART 2............................................................................................................................................3SECTION A.....................................................................................................................................3Theory..........................................................................................................................................3Scenario.......................................................................................................................................3Section B..........................................................................................................................................43...................................................................................................................................................4Case issue.....................................................................................................................................4REFERENCES................................................................................................................................6
SECTION A2) Tokyo Electric powerTheoryRelationship code consists of various type of sections. Section A is associated withleadership which states that every business must be headed by effective leadership on thebasis of which company can succed in market (UK Corporate Governance Code., 2016).Further, Section B is effectiveness where board along with committee must have properskills along with knowledge. Section C is accountability where board must present fairposition of business and Section D is remuneration where wages of executive directormust be designed keeping in view long term progress of company.Section E is linked with relations with stakeholders which highlights that proper dialoguemust be developed as per mutual understanding of the objectives where Lack of boardleadership is issue where top authorities may be ineffective in handling with all theissues.IssueJapan is indulged into practices of developing sweeping reforms to rules on corporategovernance in the wake of the Olympus Corp. The incident associated with $1.7billionwith the motive to hide two decade of investment losses at Olympics is one of theworst accounting fraud and it represents the long standing criticism of lax corporategovernance.Further, Olympus is not efficient in knowing the problems of corporate governance inJapan. Olympus is an isolated case which highlights the overall weak corporategovernance system. Critics have been regarded for outside scrutiny of Japanese boardswhose dominance lies under executive board (Sieg and Kubota, 2011). Further, their existno issue in the corporate governance system but the challenge is directly associated withthe individual firms.Moreover, the guidelines issued by advisory panel states that every listed enterprise musthave at least one external director. Apart from this, the Tokyo stock exchange alsorequires one director but in case of external auditor individual does not has vote on theboard.1
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