ABSTRACT
This chapter explores how the process of accountability is worked out in corporate governance. It considers whether the mechanisms that have been formulated do, in fact, lead to effective accountability and span the expectations gap. If there is a lack of effective mechanisms then there will be accountability gaps. The chapter involves a consideration of both internal mechanisms, such as actions that can be taken at annual general meetings, and external mechanisms, such as takeover activity and the use of gatekeepers. An understanding of how boards work and their function in different settings is important before considering how accountability mechanisms are to be developed. Cadbury Report states that Boards of directors are accountable to their shareholders and both have to play their part in making that accountability effective.
