Corporate Governance is a set of customs, laws, policies, processes and institutions governing the way a company or corporations is administered, controlled or directed. An important part of corporate governance is the nature and extent of accountability of certain individuals in an organization. Corporate governance is also used as a mechanism to reduce principle issue of the working environments.
Corporate Governance also speaks of the relationship of the stakeholders who are involved and the goals for which the corporation is governed. In modern business corporations, the external stakeholders are mainly the shareholders, trade creditors, debt holders, customers, suppliers and communities, who are affected by the activities of the organization. The board of directors, employees and executives are internal stake holders.
There are three different aspects of difference in corporate governance of the US and UK. Firstly the US 1998 Weisbach Reports shows a closer relation of performance where the board is dominated by non executive directors, to the CEO’s turnover in the firm. 
The combined code on corporate Governance, which is now known as the UK Corporate Governance Code are a set of principles of corporate governance applicable to UK’s listed companies. A body known as the Financial Reporting Counsel (FRC) oversees and takes responsibility into the implementation of the code. In May 2010, the FRC updated the code with a conclusive report of the recent consultation process along with the review period that was raised. The code applies to companies, with reporting period, starting from 29th June 2010.
In case that a company does not have enough funds to pay their employees, an exclusive insolvency agreement is made according to the Insolvency Act 1986. Basically, the law deals with the insolvency of individuals and companies in the
