Cadbury (noun, cad-bu-ry, \ kædˈberi \) rules (noun, rules, \ ˈruːlz \)
Definition: is a set of guidelines proposed by the “Cadbury Committee on Corporation Governance” and included in a report titled “Code of Best Practices” back in December 1992. This report presented nineteen general recommendations for individuals that hold office either as an executive director, a non-executive member of the board, or any other managerial position. Even though Cadbury rules aren’t mandatory, all public corporations situated in the UK are presumed to follow them. These rules were named after the head of the committee, Sir Adrian Cadbury. For more information, read about corporate governance.
In a Sentence:
- The London stock exchange refused to register JK Consulting as a member after they failed to explain why they’re not planning on following Cadbury rules.
- The introduction of the Cadbury rules was crucial for raising the standards of corporate governance and changing the way of how business is done in the UK.
- Since our firm tries its best to follow Cadbury rules, we’re always searching for ways to improve our financial reporting system.
Synonyms and related words: Cadbury report, governance, private sector, board of directors, executive director
