ABSTRACT
Although the concept of corporate governance is well recognised in Australia,1 New Zealand,2 the USA3 and in some European countries, it has hardly received any attention in the UK, primarily because of the traditional view maintained by the corporate governance system that directors are to maximise profits for their shareholders, as the interests of the latter are of paramount concern to directors. The corporate governance system in the UK is rooted in the concept of profit maximisation rather than profit optimisation. Naturally, any initiative to change the system is hardly encouraged.
