Introduction

This introduction chapter presents an overview of key concepts discussed in the subsequent chapters. This book focusses the position in the United Kingdom the issues addressed, and in particular the theoretical rationalisations, conceptions and ideas underlying the three central themes, contribute generally to the ongoing worldwide debate on corporate governance. The focus is on the failure of banks, and therefore the discussion predominantly talks about bankers' accountability. It begins with a general examination of shareholder activism and it considers the shareholders' role, responsibilities and powers as well as their rights in corporate governance. It also examines the key hurdles faced by shareholders that prevent them from acting as effective stewards. In doing so, it provides a thorough critique of three fundamental themes: executives' personal and professional accountability, executive remuneration and its role as an incentive mechanism and, finally, shareholders' engagement and activism.