History of corporate governance

Resource summary

This history was written by CIPD staff and updated in April 2011 by Lucy Grey, Associate, Coffin Mew LLP.

From the Cadbury Report to 2000

This committee was set up by the Financial Reporting Council and chaired by Sir Adrian Cadbury. The report was issued in December 1992 and looked into the performance and rewards of boards and resulted in greater transparency and accountability in boardroom proceedings. It also recommended that the board should have three non-executive directors and the role of chairman and chief executive should be held by different people.

The report has attached a code of best practice with guidelines for behaviour and disclosure. The main recommendations are the appointment of non-executive directors and an audit committee to oversee greater control of financial reporting and the separation of the role of the chair and chief executive

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