The Cadbury Committee Report of 1992 focused on improving corporate governance practices for boards of directors. It developed a code of best practices for boards, recommending that boards meet regularly, include non-executive directors, have a clearly defined division of responsibilities, and allow all directors access to professional advice. It also recommended practices for non-executive directors, executive directors, reporting, controls, and ensuring boards present a balanced assessment of the company's position. Compliance was not mandatory but many firms adopted the recommendations to avoid damage from disregarding governance.

1. Cadbury Committee Report
1992
Ankitha .S.H
1st M.Com
PRESENTED
BY
Under the guidance of
Sundar B. N.
Asst. Prof. & Course Co-ordinator
GFGCW, PG Studies in Commerce
Holenarasipura

2. CONTENTS
• INTRODUCTION
• CODE OF BEST PRACTICE OR RECOMANDATION
• CONCLUTION
• BIBILIOGRAPHY

3. Introduction
• The Cadbury committee was set up in may 1991 by the
financial reporting council of London stock exchange
• The committee published its report in December 1992
• Sri Adrian Cadbury the chairman of the Cadbury committee
• The Cadbury committee report formally entitled “the report of
the committee on the financial aspects of corporate
governance “
• It focuses on controls and reporting functions of the board of
directors
• The Cadbury committee developed code of best practices

4. Code of best practices or
recommendations
1.Related to board of directors
2.Related to non executive
directors
3.Related to executive directors
4.Reporting and control
The code of best practices has been divided
into 4 sections they are:-

5. • The board should meet regularly
• Include non-executive directors
• Clearly accepted division of responsibilities
• Formal schedule of matter specifically reserved to it
• Agreed procedure for directors to take independent
professional advice
• All directions should have access to advice and services of the
company secretary
1.Board of directors

6. • Independent Judgement
• Independent of management and free from business relationship
• Specific term and re–appointment Should not be automatic
• Selection through formal process
2.Non exctive director

7. 3.Executive
directors
• Directors service contracts
• Full and clear disclosure of emoluments
• Pay subject to remuneration committee

8. 4.Reporting and control
• It is the boards duty to present a balanced and understandable
assessment of company position
• Ensure objective and professional relationship with the auditors
• Establish a audit committee which deal clearly with its authority and
duties
Director’s Duty
• Explaining responsibility by director next to the auditors statement of
their reporting responsibility
• Report on the effectiveness of the company’s internal control system
by the directors
• Report with supporting assumptions about the business going
concern and qualification as necessary
Boards Duty

9. Conclusion
Compliance with the code of best
practices was not enforced and it was
not mandatory. How ever,many firms
conformed because they did not want
to fall victim to the destruction
consequences resulting from the
disregard of corporate governance

10. Bibliography
1. Introduction to Cadbury committee (Retrieved
from, https://en.m.wikipesia.org.) Date:-
2/4/2021
2. Cadbury committee report 1992(retrieved from,
https://www slideshare.net.) date:-2/4/2021

11. THANK YOU