Discuss 'Leadership' and 'Effectiveness' principles of UK Corporate Governance Code, 2014.

The UK Corporate Governance Code, 2014 has evolved some Principles which are divided into five sections viz. Section A - Leadership, Section B - Effectiveness, Section C - Accountability, Section D- Remuneration and Section E - Relationship with shareholders. Section A: Leadership The Role of the Board - Every company should be headed by an effective board which is collectively responsible for the long-term success of the company. Division of Responsibilities - There should be a clear division of responsibilities at the head of the company between the running of the board and the executive responsibility for the running of the company's business. No one individual should have unfettered powers of decision. The Chairman - The Chairman is responsible for leadership of the board and ensuring its effectiveness on all aspects of its role. Non-Executive Directors - As part of their role as members of a unitary board, non-executive directors should constructively challenge and help develop proposals on strategy. Section B: Effectiveness The Composition of the Board - The board and its committees should have the appropriate balance of skills, experience, independence and knowledge of the company to enable them to discharge their respective duties and responsibilities effectively. Appointments to the Board - There should be a formal, rigorous and transparent procedure for the appointment of new directors to the board. Commitment - All directors should be able to allocate sufficient time to the company to discharge their responsibilities effectively. Development - All directors should receive induction on joining the board and should regularly update and refresh their skills and knowledge. Information and Support - The board should be supplied in a timely manner with information in a form and of a quality appropriate to enable it to discharge its duties. Evaluation - The board should undertake a formal and rigorous annual evaluation of its own performance and that of its committees and individual directors. Re-election - All directors should be submitted for re-election at regular intervals, subject to continued satisfactory performance.