Corporate governance is the combination of processes and structures implemented by the Board in order to inform, direct, manage and monitor the activities of the organisation towards the achievements of its objectives.
Many stakeholders stand to gain or lose significantly from an organisation's activities. It is necessary to protect all parties by ensuring that activities are fair, just, honest and legal.
Scottish Higher Education governance standards were codified in 2013 following the 2012 Review of Higher Education ('Von Prondzynski Report').
In the UK, a major document relating to corporate governance is the UK Corporate Governance Code (2012). It combines several preceding documents and reports.
Although the UK Corporate Governance Code relates primarily to listed companies, the University voluntarily follows its recommendations of best practice.
Corporate governance guidance, specifically written for universities and colleges, is issued by CUC in their "Guide for Members of Higher Education Governing Bodies in the UK". The guide is often referred to as the "CUC Handbook".
Internal Audit reports to the Audit Committee, a sub-committee of Court.
The Committee consists of a group of non-executive specialists selected for their business knowledge and expertise.
The Audit Committee is one of the cornerstones of corporate governance in any organisation.
This article was published on Sep 9, 2013