3. Discussion and analysis of jurisdictions studied. 3.7 Effectiveness

Introduction

This Section takes as its primary concern elements of the CG system design that are relevant to procuring desired behaviour, and deterring behaviour considered inconsistent with good CG. Whether a CG system is effective depends on a number of interrelated factors, and many of the issues discussed in previous sections depend on the effectiveness and support of the system in this regard.

The main observations of interest are grouped under four main parts, as follows.

Part A considers the particular tools of policy development and enforcement;

Part B considers some specific mechanisms that may be engaged to improve effectiveness;

Part C considers specific issues surrounding the role of independent directors; and

Part D concludes with other matters not falling under the above headings.