How much should boards know?

Niamh Brennan () and John Redmond

Open Access publications from Research Repository, University College Dublin

Abstract: When companies fail boards get blamed – either they knew and were complicit, or did not know and were incompetent. At the heart of corporate governance is information asymmetry between various parties. The UK Code of Governance sets a high standard for board information governance, placing a particularly heavy burden on chairmen, stating that ‘the chairman is responsible for ensuring that the directors receive accurate, timely and clear information’. The Code goes on to state that ‘management has an obligation to provide such information, but directors should seek clarification or amplification where necessary’. Corporate governance failure is almost always accompanied by information asymmetry whereby the non-executive directors were not aware of what was going on.

Keywords: Corporate governance; Board information governance; Management; Board knowledge; Information-asymmetry; Information processes (search for similar items in EconPapers)
Pages: 3 pages
Date: 2013-05
References: Add references at CitEc
Citations:

Published in: Governance & Compliance, (June 2013) 2013-05-24

Downloads: (external link)
http://hdl.handle.net/10197/5405 Open Access version, 2013 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:rru:oapubs:10197/5405

Access Statistics for this paper

More papers in Open Access publications from Research Repository, University College Dublin
Bibliographic data for series maintained by Joseph Greene ().