Subsidiaries are a common feature of many organisational structures, particularly for international businesses. This guide explains the importance of subsidiary governance to UK-listed holding companies, looking at the key drivers and benefits. It offers practical tips for establishing an effective governance framework as well as pointing out the potential pitfalls.
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Chapter 1 discusses the reasons for establishing subsidiaries and looks at examples of poor subsidiary governance practice.
Chapter 2 considers the key legal and regulatory sources relevant to the need to establish sound subsidiary governance. These include the Companies Act 2006, the UK Corporate Governance Code 2012 and Internal Control: Revised Guidance for Directors.
Chapter 3 looks at other less formalised drivers for sound corporate governance which are encapsulated by the concept of 'corporate social responsibility.'
Chapter 4 focuses on the drivers for sound subsidiary governance. These include the need to comply with law, regulation and best practice and also shareholder expectation. The potential benefits of good subsidiary governance are also considered.
5. Sound subsidiary governance: Establishing a subsidiary governance framework and what it might encompass
Chapter 5 looks at how to go about establishing a sound subsidiary governance framework and includes a subsidiary governance 'to do' list.
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