AN APPROACH TO THE INTERNAL REGULATION OF THE CORPORATION: A CRITICAL ANALYSIS OF THE RECOMMENDATIONS OF THE CADBURY COMMITTEE
| Date | 01 March 1993 |
| DOI | https://doi.org/10.1108/eb024793 |
| Published date | 01 March 1993 |
| Pages | 48-58 |
| Author | CHRISTOPHER STANLEY |
| Subject Matter | Accounting & finance |
AN APPROACH TO THE INTERNAL REGULATION OF THE
CORPORATION: A CRITICAL ANALYSIS OF THE
RECOMMENDATIONS OF THE CADBURY COMMITTEE
Received: June 1993
CHRISTOPHER STANLEY
CHRISTOPHER STANLEY
IS
LECTURER IN LAW AT THE UNIVERSITY OF
KENT. HE IS ALSO A BARRISTER. HE HAS HAD
WORK PUBLISHED ON COMPANY LAW AND
FINANCIAL SERVICES REGULATION WITH
PARTICULAR REFERENCE TO FRAUDULENT
ACTIVITY, AND DEVIANCY AND THE POLITICS
OF REGULATION. HE HAS ALSO PUBLISHED ON
THE THEORY OF REGULATION IN
CONTEMPORARY URBAN CULTURE.
ABSTRACT
This paper is
concerned
with the
recom-
mendations
of
the Committee on
the Finan-
cial Aspects of Corporate Governance
under the Chairmanship of Sir Adrian
Cadbury (Final Report 1st December,
1992).
The
paper
analyses
the
recommen-
dations of
the Committee
with particular
reference
to the
establishment
of a
Code
of
Practice
and
offers
a
critical
evaluation of
the Committees proposals within the
broader frame of the
internal regulation
of
corporate
power.
It
specifically analyses
the
recommendations
made with regard to
auditors'
liability
and
offers
an
assessment
of
the importance
of gaining a
regulatory
perspective on the operation
of
the
account-
ing
profession
with
regard
to the auditing
of
public
companies.
In an era which is witness to the
continuous unmasking of corporate
and financial scandals including
Maxwell, BCCI, Blue Arrow and
Barlow Clowes there have, perhaps
inevitably, emerged numerous policy
initiatives from various quarters
including a Royal Commission on
Criminal Justice (Runciman) dealing
in part with the detection and prose-
cution of fraud and a House of
Commons Social Services Select
Committee investigation into pen-
sion fund law. The structural prob-
lems in terms of both criminal and
civil law with regard to commercial
trading activity run deep and scan-
dals such as those mentioned above
have served to illustrate the manifest
inadequacies and cultural intransi-
48
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