Module LAW53815: Introduction to Corporate Governance

Department: Law

LAW53815: Introduction to Corporate Governance

Pre-requisites

Corequisites

Excluded Combinations

Aims

• to ensure that students:
• (a) understand the main issues that arise in relation to the governance of public limited companies;
• (b) are able to evaluate the response of the UK's system of corporate governance to those issues.

Content

• The syllabus will cover the following:
• the economic and social role of large public companies within the UK: corporate power and the separation of ownership and control;
• theories of the proper objectives of corporate governance; shareholder wealth maximisation versus 'stakeholder' theories;
• the UK system of corporate governance:
• 1. Legal regulation, including the duties of directors;
• 2. Market controls (labour market, capital markets, atkeover market);
• 3. Internal voice (Non-executive directors; shareholder activism);
• 4. Recent developments and future directions (Hampel; DTI Company law review);
• a case study: directors' remuneration;
• the claims of other stakeholders with particular reference to:
• 1. Employee protection: industrial democracy;
• 2. Supplier-relationships; the role of trust, relational contracting;

Learning Outcomes

Modes of Teaching, Learning and Assessment and how these contribute to the learning outcomes of the module

• By acquainting students with the principal theories about the proper role of corporate governance regimes.
• By enabling students to acquire an understanding of the rules, principles, practices and institutions which make up the prevailing system of corporate governance in the UK.
• By enabling students to develop a critical evaluation of the UK's system of corporate governance.

Teaching Methods and Learning Hours

Summative Assessment

Formative Assessment

One student essay based on the student's class presentation.