Corporate Governance Codes Under the Spotlight

Although somewhat simplistic, this highlights the importance of processes that companies should institute and implement to ensure that effective practices transcend the various levels of the organisation. These were viewed at the time as necessary responses to what was considered a lack of managerial oversight which led to the spectacular corporate collapses of the Bank of Credit and Commerce International, Coloroll, the Polly Peck Group and Maxwell Communication Corporation in the late 1980s and early 1990s. These collapses not only resulted in substantial financial losses to shareholders, employees, creditors, investors as well as the government—they were also perceived as posing considerable challenges to the integrity and reputation of the City of London as an international financial centre.