Apr 30, 2003

Searching for balance

By Richard Carpenter

Looking at conflicting pressures in corporate governance and how companies are feeling the strain

The current furor in the UK over the Higgs report on non-executive directors raises some wider issues about the regular review of governance rules. One of the main complaints over Higgs has been that the code – revised according to Derek Higgs's suggestions – is too rule-based. Flexibility, argues the London Stock Exchange among others, is the more traditional UK approach to these issues. Yes, by all means have high-minded principles, but let them be implemented in a flexible fashion.This