Loans to corporate entities based on a fixed rate for a fixed period. Bonds can be traded and the price usually changes when there is a change in prevailing rates of interest rates. Corporate bonds carry a higher risk than government stock (gilts) but are lower than shares as a company must pay off all debts before paying shareholders.

System by which companies are run and the means by which they are accountable to their shareholders, employees and the regulatory authorities. Directors are expected to run companies soundly and prudently. See COMBINED CODE OF CORPORATE GOVERNANCE; TURNBULL REPORT.
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A system specifying the division of duties, rights, and responsibilities among various participants in a corporation, such as the board of directors, the various committees within the board of directors, operating managers, and shareholders. Corporate governance enumerates the rules, guidelines, and procedures for making decisions affecting corporate affairs. The term has received particular attention in recent years because of massive lawsuits against the directors and officers of a number of high-profile corporations that filed for bankruptcy. Many business commentators, as well as insurance industry observers, believe that a breakdown of corporate governance, especially in the area of financial and accounting controls, was largely responsible for such failures.

Core Principles Byelaw (no. 34/96) requires honesty, transparency and integrity from managing and members’ agents. The agencies are also subject to the FSA’s Principles of Business that correlate closely with Lloyd’s Core Principles. The board of a managing or members’ agent must ensure that the business is accountable to the FSA and follows the Lloyd’s Core Principles. Principle 9 emphasises the need for adequate management controls. The Lloyd’s Code for Sound and Prudent Management requires that each agent is directed and managed by a sufficient number of persons who are fit and proper for the positions they hold. Sound and prudent management embraces direction and management; staffing; supervision and accountability; and compliance.

an underwriting member of Lloyd’s that is not an individual member; under Lloyd’s rules a corporate member may be a company, a Scottish limited partnership or a limited liability partnership.
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Company admitted to membership of Lloyd’s.

Lloyd’s syndicate with a single corporate member.