ABSTRACT
This chapter looks at the effectiveness of the regulatory framework for corporate governance, focusing mainly on the UK Corporate Governance Code. It is argued that regulation functions on the basis of “conditions”, and it suggest that the presence or absence of these conditions, which is determined by organizational differences, will either support or undermine the effectiveness of particular regulatory tools and initiatives. This provides the basis for understanding how and why the governance code will or will not work, and might indicate ways of improving its performance. Although the chapter adopts a largely Western, market economy viewpoint, it offers some comments on how the issues raised might be equally relevant for other jurisdictions.
