America’s Sarbanes-Oxley Act, UK’s Higgs Review, and Ontario’s Bill 198 do not promote good governance and, therefore shareholder value, as pointed out recently by Boardroom’s Brian Lechem, so much as they protect investors from unseemly conduct. Like speed limits and stop signs they are useful to protect, but in no way do they constitute guidance for skillful, wise driving. One look at the unending stream of codes, particularly since Cadbury’s 1990 report, is convincing evidence that there will continue to be more. While new prescriptions of practice are not without value, they have sharpened boards’ interest in lawful compliance more than in better governance.
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