TABLE OF CONTENTS 8.106 We first discussed CG in Chapter 1. In summary, CG relates to the senior-level internal control processes of an organisation, and in particular the arrangements for managing risks. In the case of the private sector, this includes:
Guidance for the appointment of the Chairman, directors and non-executive directors, their roles and responsibilities.
The creation of a system for internal control.
The auditing of the board s performance.
The principal duties of the remuneration and nominations committees.
8.107 The Combined Code on Corporate Governance, issued in July 2003, includes matters taken from the Turnbull Report mentioned in Chapter 1. The Guidance in the Turnbull Reports makes reference to the need for a sound system of internal control in the particular circumstances of the organisation (company).
8.108 Human Resources professionals have an opportunity to conduct their activities in accordance with the principles of internal control and to make an effective contribution to the organisation s overall internal control systems.
8.109 In addition, the Guidance states:
All employees have some responsibility for internal control as part of their accountability for achieving objectives. They, collectively, should have the necessary knowledge, skills, information and authority to establish, operate and monitor the system of internal control.
8.110 Human Resources professionals can make a major contribution to CG in three ways:
By advising on, and supporting, the remuneration and nominations committees in managing the process of the selection, appointment and remuneration of directors...
