In UK the corporate governance code is updated regularly and the recent one aims to increase accountability of all directors so that they take responsibility of the company, the code gives prime importance to manage risk efficiently and effectively so that the board takes responsibility of managing risk plus also to encourage an effective debate among the board members to result in much more effective decision making within the firm.
These factors will improve the performance of the board but the code has encouraged performance based pay in order to motivate employees to encourage high quality performance. The UK code has also addressed factors like diversity and annual reelection of the board members. The basic difference between the codes of the two companies is that one has evolved and updated itself to stand the tests of time whereas,Chinaneeds to upgrade its corporate code of governance (Tricker, 2008).
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