The UK Corporate Governance Code is not law and therefore, compliance is not compulsory. The Financial Reporting Council (the "FRC") asks companies to 'comply or explain' - either follow the Code or explain why they do not. On the other hand, the United States of America adopts a 'black letter law' approach with a legislative framework setting out the requirements and resulting penalties for non-compliance?

Evaluate critically which corporate governance practice (the UK or the USA) contributes towards the overall well-being of a financial system in a country?

Answer rating: 100% (QA)

The ap proach to corpora te g overn anc e in eit her the UK or t he USA has its own merits and draw backs and there is no clear a nsw er as t o whi ch ... View the full answer