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Combined Code page

THE ORIGINS OF THE COMBINED CODE

At its highest level Corporate Governance is best summed up by the Revised Combined Code, a report of the Committee on the financial Aspects of Corporate Governance (the Cadbury Report, 1992) to which was attached a Code of Best Practice.

The code is divided into main principles, supporting principles and provisions. For both main principles and supporting principles a company has to state whether the comply with the provisions or - where they do not - give an explanation. It is the Code provisions that contain the detail on matters such as separating of the role of chairman and chief executive, the ratio of non-executing directors and the composition of the main board committees.

The first principle of the Code states that: "Every company should have an effective board". The board's effectiveness is widely regarded as a prerequisite for sustained corporate success. The quality and effectiveness of directors determines the quality and effectiveness of the board. The Main Principles covered in the Combined Code are guidance for:

To find out more, please visit our Combined Code page