Codes of corporate governance: a comparative analysis between Ghana and the UK

Abstract

We highlight considerable important aspects of the proposed 2010 Security and Exchange Commission (SEC) Code of Ghana and compare them with UK Corporate Governance Codes. Comparisons are undertaken on their respective definitions of corporate governance, compliance and enforcement, board structure and composition and key board committees. Initial findings suggest that both the 2010 SEC of Ghana and UK Codes are voluntary in nature and principally business induced. However, we recommend a more highly regulated business environment in Ghana to enhance corporate governance practices through effective compliance and enforcement. As several Ghanaian firms are characterised by large shareholders who painstakingly influence both the appointments of chief executive officer and board members, enhancements in corporate governance practices in Ghana are vitally important to safeguard the rights of minority shareholders, infuse confidence in investors and compliance with socio-economic goals of Ghana.