Question
Which of the following is NOT a key principle addressed in the UK Corporate Governance Code: effectiveness leadership remuneration accountability relation with shareholders taxation
Answer
4.4
(262 Votes)
Callan
Master · Tutor for 5 years
Answer
Taxation
Explanation
## Step1: The UK Corporate Governance Code addresses key principles intended to represent principles of good corporate governance. This encompasses effectiveness which concerns the functioning of a company, sound leadership necessary for guiding a company's path, remuneration to ensure the right balance of reward to effort and risk; accountability to encourage transparency and maintain trusting business relationships, and a proper relationship with shareholders given they often financially back the company. ## Step2: However, the principle of taxation in this context does not often fall directly into the scope of principles commonly addressed in a typical corporate governance code. Tax matters, while crucial to a company's operations, don't commonly govern the relationship between a company's management, it’s board, its shareholders and other stakeholders.