• Internal Code :
  • Subject Code :
  • University :
  • Subject Name : Accounting and Finance

Table of Contents





Introduction to Corporate Governance Issues in The Annual Report

A set of practices, procedures and rules with the help of which an organization is governed and controlled is known as corporate governance. Principally, corporate governments helps the organisation to balance the interests of many partners in an organization, including customers, shareholders, senior management, financiers, suppliers, the government and the community. As well, a framework is provided by the corporate governance for attaining goals of the organization and therefore covers all aspects of management from action planning and internal controls to performance measurement and disclosure of corporate information. Even though governance is indirectly influenced by shareholders and Proxy advisors who are significant stakeholders they are not an instance of self-management.

The board of directors is important in administration and can take a big step in valuing the stock. As the integrity of the business operation of the organisation is showed by the business management, for the investors it becomes the important element of an organisation. In an attempt to build trust with the community as well as with the investors organisations are helped by the integrated corporate governance. Therefore, financial viability is improved by the help of corporate governance through creating long-term investment opportunities for market participants. Communicating with the corporate management of an organization is an important element of the community-investor relationship. For example, an investor relationship site o apple outlines the company’s management (executives, board of directors) and its charter and administrative documents, including bylaws, stock ownership guidelines, and corporate management (Arora and Dharwadkar 2011).

The Daily Mail and General Trust plc (DMGT) is a British media company and owner of the Daily Mail, with a few more headlines. The company operates a multinational portfolio of companies with revenues of about 2 2 billion. The company operates in more than 40 countries with the help of its affiliates RMS, DMG Information, DMG Events, Euromoney Institutional Investors and DMG Media. It is listed on the London Stock Exchange. DMGT manages a diverse portfolio of multinational corporations, with total revenues of approximately 1.3 billion, and provides attractive information, analysis, insights, information, news and entertainment for businesses and consumers. This study will critically analyse corporate governance issues in the annual report of the company.

Discussion on Corporate Governance Issues in The Annual Report

In the current economic downturn, corporate governance and its administrative reporting could put further pressure on the DMGT. The searches included in this best practice organization were initially taken from the DMGT’s annual report and considered the time ending on 31 December 2018 and 31 March 2019. This was reported before the full gravity of the economic situation was revealed. Mandatory disclosure of accounting values related to financial risk and liquidity is provided in the financial statements. The details of concerns surrounding the “front end” of the annual report may not reflect a broader level of expectations in the current economic climate. Recent research has shown that good corporate governance improves business performance. In the current economic environment, investors can take a closer look at the manifesto of corporate governance of an organization. The Financial Reporting Council (FRC) has issued guidelines that help managers discharge their disclosure responsibilities. Entitled "Updates for the Management of Listed Companies: Concerns and Liquid Risk Taking", this guideline encourages investors to provide a broad disclosure based on their decisions on the application of accounting concerns.

The way DMGTs operate requires strong governance, and the ability to grow profitably, responsibly and sustainably and how they maximize shareholder value in the long run. In practice, this means that the board establishes a process operated by the member store to pay shareholder value. The Board of Directors is committed to the high governance standards expected of shareholders. Fortunately, our board of directors has a wide range of business and international market experience that supports rigorous and high-quality debate about DMGT’s strategic opportunities. The company would like to thank Kevin Parry, who chaired the independent committee to evaluate the fairness of the distribution in April 2019, and would like to thank non-executive directors for their contributions compared to last year. It is promoted by the board and cascades across the whole group (Filatotchev and Nakajima 2010).

It is a key element of the ability of the company to grow profitably, responsibly and sustainably and is a way to maximize shareholder value in the long run. DMGT's approach to administration is unique. They emerge from the long-term perspective of family holding and it is exciting, because their corporate practices are strengthened by significant benefits.

The management structure of this organization sets clear parameters for decision making. This is achieved through representative authority to ensure that decisions are made by the appropriate bodies and that the DMGT Board has clear accountability. Administration practices continue to evolve. DMGT 2016 enforces the UK Corporate Governance Code. The 2018 UK Corporate Governance Code will be implemented in the DMGT from 2020. Where possible, the company have begun to publish positions related to the 2018 Code in this annual report. They will voluntarily apply the new provisions as needed and explain if they do not agree (Pechlaner, et al., 2012).

Rothermere Continuation Limited (RCL) is a Bermuda-based holding company. The main asset of RCL was DMGT common stock. The RCL is governed by a prudent belief placed in trust for Lord Rosmar and his close relatives. RCL states that for the benefit of all shareholders, companies must adhere to the highest standards of corporate governance. This is the time to control the entire RCL. RCL again informs the organization that its management goals are long-term and discusses any material changes in the goals with the board of directors of the organization.

As part of the organization's ongoing obligation to ensure compliance with registration and related regulations, authorized directors and other senior officials are encouraged to access future internal information on a regular basis and make future administrative decision and confirmed that it will affect the business outlook. The company regularly participates in the Investment and Finance Committee (Al-Janadi, et al., 2013).

As the owner of rigorous data, DMGT benefits from growing uncertainty around the world because consumers rely on data and analysis to make increasingly critical decisions. The results of the UK general election (December 2019) and the terms of Brexit remain uncertain as concerns remain about the UK economy. Extreme weather, commodity price fluctuations and constant exchange rates have a direct impact on the economic and social environment of both cradle investment and business activities. Diversified portfolio of the company balances an increasingly volatile world. One sector can rise to the top and the other sector can benefit. DMGT provides its customers with basic content, data, analysis and insights. This allows them to take data as a way to navigate instability away from instinctive decisions. In addition to the publisher of consumer media newsprint, DMGT Business does not rely on trade between the UK and other members of the EU. The future looks confident despite political and macroeconomic uncertainties.

Changes in the political situation around the world are associated with a trend of political uncertainty, especially in the Middle East. The DMGT closely monitors political change and its impact on geography and related sectors. In many cases, the uncertainty of changing political and regulatory norms provides commercial opportunities for customers to anticipate their business impact. The managers of the company are constantly reviewing their actions in response to global sanctions and changes in diplomatic relations (Kruse and Lundbergh 2010).

As a business-critical data provider, a global industry and media analysis tool provider, DMGT faces cyber security risks throughout the business. The threat of cyber security is a constant business risk in the digital age. Governments and regulators are increasingly concerned about threats to individuals and society as a result of security breaches. Customer trust is easily compromised, so enforcing the highest possible cyber security standards is essential to maintaining customer and market trust. As a result, DMGT continues to tighten its data security controls. The group's chief information security officer has led the ongoing review of the cyber security environment, revised data security standards, roadmaps to compliance, and the implementation of regular cyber security inspections. The executive committee ensures the involvement of senior levels of the whole group and appropriate investment in risk reduction. Event reporting, response, and best practices are grouped to reduce threats (Royaee and Dehkordi 2013).

The rate of technological change and the acceptance of new technologies in our core sectors by customers is accelerating, changing and eliminating traditional business models. As a group of entrepreneurs focused on digital growth, DMGT encourages innovation and continues to adopt new ideas. This is reflected in the expectation of at least 5% investment in biological enterprises each year DMGT has a family history that encourages long-term thinking and application of patient capital. As a result, the group can invest in the future, sow seeds and increase innovative opportunities. DMGT’s investment approach allows them to reduce their distance to their customers through their business portfolio. It gives customers the right idea about price.

There is a proliferation of systems and devices designed to work intelligently. The amount of data available for generation, storage, and analysis is constantly increasing, and with the benefits of increasing artificial intelligence, smart systems can use the data to quickly process it and inform and change future behaviour. These developments create opportunities for DMGT and its business. Artificial intelligence, including machine learning, enables companies to analyse large amounts of data and discover previously unseen insights. DMGT's business helps them to identify the strategic value of the information it provides to their customers, access data from a variety of sources, and determine how algorithms can be used to improve process and understanding. The region is developing rapidly and DMGT is taking advantage of the opportunity to develop new products to increase business efficiency. Statistical analysis is essential for many products and services that continue to evolve throughout the business. DMGT has core technology capabilities with artificial intelligence capabilities that business firms have acquired.

The top talents of the global workforce are attracted to companies that provide attractive employee quality. These include goals that exceed benefits, competitive awards, and ongoing learning and development opportunities. Competing with key employees, especially key technical talents, DMGT is committed to increasing employee offerings. Key technology functions integrate group-wide communication with agility for technical talent. DMGT assists in training and development to enhance staff efficiency and transfer efficiency within organizations. The company also offers initiatives such as the Talent Development Program which encourages talent development within the DMGT. The board of directors of this company meets with the emerging leaders of the operating company as part of the board's schedule (Andersen, 2012).

The board has a schedule of reservations. These details are important for managing an organization that does not represent the board. These will be recorded in a few minutes if the director is concerned about the board's activities. There were no such concerns during the reporting period. The Board of Directors is informed about the company through regular briefing sessions on the issue of shareholders. Company secretaries and company registrars have access to shareholders' questions to discuss and raise issues they may face.

In the context of the changed group, the company have focused their monitoring work on the areas of accounting and audit testing and the high-risk work of potentially influential events. The group has a broad process for identifying material business risks, such as financial risks, operational risks, and compliance risks, which may affect the success of the group's strategic and business goals. The Audit and Risk Committee reviews the financial information related to the acquisition and settlement to ensure proper accounting, including the information contained in the notification issued for distribution in April 2019. Over the years, the company have focused on cyber security threats and carefully monitored their group for compliance with the General Information Security Control (GDPR). The company continue to monitor the potential impact of Brexit on the DMGT. The committee considered the risks associated with Bresit and concluded that the company’s readiness was without any factors that would affect the group’s business (Tricker and Tricker 2015).

Throughout the year, the group has focused on operational efficiency. The Committee emphasizes on risk management practices and ensuring the need to change the address of internal and external supervision. The Board of Directors is obliged to promote the long-term success of the company to its shareholders. These include: Acquisition of large size, settlement and approval of capital investment. Financial efficiency; Review the effectiveness of the group's internal control system.

The Board will approve and oversee the approval and execution of large capital projects and approve contracts on a small scale, either strategically or by materially. It does not recommend general business courses such as bank arrows or acquisition approvals if the company enters or is established by a subsidiary or disposal of fixed assets over 50 million (including dubious assets such as intellectual property). The board will approve contracts with non-governmental organizations or subsidiaries. The Board approves changes in the structure, size and composition of the Board of Directors and Senior Management in order to maintain a proper balance of skills and experience within the organization in compliance with the recommendations of the Compensation and Nomination Committee. The Board approves the election of the CEO and the membership and chairman of the Board as recommended by the Committee on Compensation and Nomination. They approve the appointment or dismissal of the Institutional Secretary and the appointment, reappointment or removal of external auditors for the approval of the shareholders at the General Session as recommended by the Audit and Risk Committee (Huang, 2010).

The Board of Directors of the Company shall determine the policy of compensation for the whole group and shall determine the compensation of the Director, the Executive Committee and other appointed senior officers. They will determine the compensation of part-time directors subject to the approval of the association and partners. The Board conducts a formal and rigorous annual review of its executive, committee, independent directors and responsible departments and determines its independence in light of its nature, judgment and relationship. The board considers a balance of interests between shareholders, employees, customers and the community.

The board should have confirmed corporate governance arrangements for the entire group, received reports on the views of the company’s shareholders, and contacted the entire board of directors. The board should approve political grants and should Approve the appointment of key professional consultants to the group (Christopher, 2010).

The authority of the board is to receive information from the employees of the organization for the performance of their responsibilities and to seek expert advice on the expenses of the organization, personal law, accounting or anything else that is necessary. They call employees on the board of directors for questioning and when needed. Companies also reserve the right to provide annual reports detailing issues that cannot be resolved. The Board reviews these reference terms and their control methods in response to changes in control, regulatory guidelines and the development of best practices.

All members of the Audit and Risk Committee are a part-time director and two independent executive directors. The committee maintains sector-related expertise in managing DMGT as a whole and provides effective level of challenge for management. Kevin Parry has extensive experience as a former senior audit partner, former chief financial officer and chairman of the audit committee. The financial results of the group and the integrity of its internal control system are important for the management and shareholders. As a result, the Audit and Risk Committee encourages and strives to maintain a high standard of integrity and conduct in financial reporting and internal control. The committee works with internal and external auditors to implement and investigate results and controls and to inform them of challenges.

The Commission has performed its duties for many years and has ensured that the Group follows the Statutory Audit Services (Competitive Bidding Process and Necessary Use of Audit Committee Responsibilities) Order 2014 for market research of large corporations. No such advice was taken during the year. The Board believes that these members have been added to the Audit and Risk Committee discussions and the Chairman of the Committee has confirmed that there is no conflict of interest other than the April 2019 allocation. The Audit and Risk Committee annually reviews the terms and validity of that reference. The review confirmed that the committee was effective in achieving its goals based on policy rules and group requirements. The committee continues to focus on cyber risk and business and management restructuring (Shipilov, et al., 2010).

According to Landier, et al., (2013) corporate management can be defined as the system used to manage and manage an organization. In fact, this concept applies to all types of businesses around the world, including banks, finance companies and other types of businesses such as the retail industry. In particular, corporate management refers to the control tests used by the directors of an organization. Theoretically, the directors of listed companies are responsible for the activities of shareholders. On the other hand, the management practices of the organization are limited to the practice of shareholder authority and are rarely applied. Then give the manager enough strength to perform actions that he thinks are appropriate. This is not always the case, but it seems that some government-run individuals are relatively different forms of government where the behavior of officials is somewhat discouraged.

The Board of Directors is always responsible for the highest performance of the organization and corporate management. However, there are some issues related to the board. One of these relates to the level of skill and expected care of managers, especially with part-time managers. The following comments should be noted in the report of all non-executors:

Non-executive managers should be aware that a variety of skills, some of which may be highly skilled, may be brought on board and that such a person may have limited accounting experience. However, accounting is not so complicated and such managers should be deprived of account liability. The issues related to accounting can be clearly explained so that the intelligent people can understand them. If the account proceeded with caution, explaining the key items, the public should be able to ask relevant questions and make informed decisions based on them. After all, if the public does not understand the accounting of an organization, then he should not be the director of that organization. Often this can lead to the question of what a manager’s short accounting experience and his or her general knowledge can do with his or her accounting experience. Criticism of accounting was almost there, which should have been clear to complex, tolerant, and rational managers who were sensitive to the issue. In most cases, the manager who decided to take accounting treatment was in a better position than the auditor to determine if the treatment was acceptable. Thus, managers cannot rely on the fact that they are not qualified to suspend their independent judgment and prevent the auditor from taking an unacceptable course (Pande and Ansari 2014).

Another problem of the board is the lack of financial information. There came a time when some members of the board did not prepare or present to the board an integrated budget or management account combining the budgets and results of all the departments within the board. The absence of a unified control account enables accounting managers to adjust at the end of the year and creates convenient, overreported profits for other managers.

In the past few years, the first board to announce its results has been the first to announce its results since "information" was disseminated at the end of the board a day before the announcement of the interim or interim announcement. In fact, the board never discussed in detail the overall outcome or what was behind it. “The lack of a combination of results reported to the first board was an unusual situation that no director should have tolerated.

Positive aspects of management

The Board has full control over all matters relating to the organization. Their commitment to patience and responsibility, and ultimately their compliance with agency law, contributes to the development of all organizations. As such, the Board continues to believe that information currently used financially, as well as information related to operations currently used, is acceptable. The authority of the board of directors is clearly recognized within the company. As such the board has proven to be both ethically and legally accountable with proper corporate management, proper structure and accountability to stakeholders and the community.

Also, the company now maintains good relations and open communication with investors. In fact, stock renewals are invited by regular firms whenever there is a meeting to discuss a transaction renewal. Also, investors have the opportunity to meet with board members whenever the annual meeting is held. And of course, as an individual investor, one can access the company’s website and take advantage of various shareholder services. Undoubtedly, every partner in the organization has appropriate consideration. The past, present and future certainly seem to be very well-planned structures in the corporate departments of an organization. There are appropriate policies and procedures related to financial and management issues. Determining different types of situations is definitely a good move for them (Pechlaner, et al., 2012).

Conclusion on Corporate Governance Issues in The Annual Report

The procedure of corporate governance is focused on how an organization operates, how managers operate, the questions the board faces, and how an organization is accountable to its shareholders. In this case, DMGT can implement effective corporate management, making the company more competitive in the market. Thus, issues related to the board include the manager’s expected skill and level of care and inadequate financial information. Organizations are working to solve the problem, as board members are trying to come up with a solution to this problem. On the positive side, the members of the organization have been able to make a good contribution to ensure the competitive performance of the organization. The board of directors of this organization ensures that all activities comply with legal and business principles.

They also ensure that their social responsibility is linked to their accountability. The company has its pros and cons, but it also has its downsides. One of them supports the idea that it is not always possible to guarantee that no loss or error will occur due to stakeholder errors or inconsistencies. This is the ability to manage the diversity and differences that may be linked to an organization's business practices. Finally, the inability to secure shareholder value is another disadvantage of an organization. Shareholders are referred to as key partners in each industry. It can be stated that to be competitive, an organization must starts with corporate management (Christopher, 2010).

References for Corporate Governance Issues in The Annual Report

Al-Janadi, Y., Rahman, R.A. and Omar, N.H., 2013. Corporate governance mechanisms and voluntary disclosure in Saudi Arabia. Research Journal of Finance and Accounting, 4(4).

Andersen, J.A., 2012, November. Reintroducing the Owner: On Corporate Governance, Goals, Organization and Leadership Theories. In Proceedings of the 8th European Confe-rence on Management, Leadership and Governance, J. Politis (eds.), Academic Conferences International Limited.

Arora, P. and Dharwadkar, R., 2011. Corporate governance and corporate social responsibility (CSR): The moderating roles of attainment discrepancy and organization slack. Corporate governance: an international review, 19(2), pp.136-152.

Christopher, J., 2010. Corporate governance—A multi-theoretical approach to recognizing the wider influencing forces impacting on organizations. Critical perspectives on accounting, 21(8), pp.683-695.

Christopher, J., 2010. Corporate governance—A multi-theoretical approach to recognizing the wider influencing forces impacting on organizations. Critical perspectives on accounting, 21(8), pp.683-695.

Filatotchev, I. and Nakajima, C., 2010. Internal and external corporate governance: An interface between an organization and its environment. British Journal of Management, 21(3), pp.591-606.

Huang, C.J., 2010. Corporate governance, corporate social responsibility and corporate performance. Journal of management & organization, 16(5), pp.641-655.

Kruse, C. and Lundbergh, S., 2010. The governance of corporate sustainability. Rotman International Journal of Pension Management, 3(2).

Landier, A., Sauvagnat, J., Sraer, D. and Thesmar, D., 2013. Bottom-up corporate governance. Review of Finance, 17(1), pp.161-201.

Pande, S. and Ansari, V.A., 2014. A theoretical framework for corporate governance. Indian Journal of Corporate Governance, 7(1), pp.56-72.

Pechlaner, H., Volgger, M. and Herntrei, M., 2012. Destination management organizations as interface between destination governance and corporate governance. Anatolia, 23(2), pp.151-168.

Pechlaner, H., Volgger, M. and Herntrei, M., 2012. Destination management organizations as interface between destination governance and corporate governance. Anatolia, 23(2), pp.151-168.

Royaee, R. and Dehkordi, B.B., 2013. Role of corporate governance in organization. GSTF Journal on Business Review (GBR), 2(3).

Shipilov, A.V., Greve, H.R. and Rowley, T.J., 2010. When do interlocks matter? Institutional logics and the diffusion of multiple corporate governance practices. Academy of Management Journal, 53(4), pp.846-864.

Tricker, R.B. and Tricker, R.I., 2015. Corporate governance: Principles, policies, and practices. Oxford University Press.

Remember, at the center of any academic work, lies clarity and evidence. Should you need further assistance, do look up to our Accounting and Finance Assignment Help

Get It Done! Today

Applicable Time Zone is AEST [Sydney, NSW] (GMT+11)
Not Specific >5000
  • 1,212,718Orders

  • 4.9/5Rating

  • 5,063Experts


5 Stars to their Experts for my Assignment Assistance.

There experts have good understanding and knowledge of university guidelines. So, its better if you take their Assistance rather than doing the assignments on your own.

What you will benefit from their service -

I saved my Time (which I utilized for my exam studies) & Money, and my grades were HD (better than my last assignments done by me)

What you will lose using this service -

Absolutely nothing.

Unfortunately, i had only 36 hours to complete my assignment when I realized that it's better to focus on exams and pass this to some experts, and then I came across this website.

Kudos Guys!




  • 21 Step Quality Check
  • 2000+ Ph.D Experts
  • Live Expert Sessions
  • Dedicated App
  • Earn while you Learn with us
  • Confidentiality Agreement
  • Money Back Guarantee
  • Customer Feedback

Just Pay for your Assignment

  • Turnitin Report

  • Proofreading and Editing

    $9.00Per Page
  • Consultation with Expert

    $35.00Per Hour
  • Live Session 1-on-1

    $40.00Per 30 min.
  • Quality Check

  • Total

  • Let's Start

500 Words Free
on your assignment today

Browse across 1 Million Assignment Samples for Free

Explore MASS
Order Now

Request Callback

Tap to ChatGet instant assignment help

Get 500 Words FREE
Ask your Question
Need Assistance on your
existing assignment order?