Upcoming Events

Feb
13
Tue
2018
9:00 am How to become a Non-Executive Di... @ Institute of Directors
How to become a Non-Executive Di... @ Institute of Directors
Feb 13 @ 9:00 am – 4:30 pm
How to become a Non-Executive Director – London 13 February 2018 @ Institute of Directors
Find out how you can obtain a Non-Executive Director position by booking a place on this interactive 1-day course. ‘A well structured and presented introduction to the responsibilities, challenges and attributes required of being a[...]
Mar
13
Tue
2018
9:00 am The Effective Non-Executive Dire... @ Institute of Directors
The Effective Non-Executive Dire... @ Institute of Directors
Mar 13 @ 9:00 am – 4:30 pm
The Effective Non-Executive Director – London 13 March 2018 @ Institute of Directors
The effective Non-Executive Director course helps you to be an effective non-executive director. It instils a real sense of what is expected of NEDs, and how you can meet the challenge. This one-day interactive course is aimed[...]
Apr
24
Tue
2018
9:00 am How to become a Non-Executive Di... @ Orchard Street Business Centre
How to become a Non-Executive Di... @ Orchard Street Business Centre
Apr 24 @ 9:00 am – 4:30 pm
How to become a Non-Executive Director – Bristol 24 April 2018 @ Orchard Street Business Centre
Are you thinking of becoming a Non-Executive Director as part of a Portfolio Career or to develop your boardroom skills prior to taking up an executive director role? Join us on Tuesday, April 24 2018 to[...]
May
22
Tue
2018
9:00 am How to become a Non-Executive Di... @ Institute of Directors
How to become a Non-Executive Di... @ Institute of Directors
May 22 @ 9:00 am – 4:30 pm
How to become a Non-Executive Director – London 22 May 2018 @ Institute of Directors
Find out how you can obtain a Non-Executive Director position by booking a place on this interactive 1-day course. ‘A well structured and presented introduction to the responsibilities, challenges and attributes required of being a[...]
Jun
12
Tue
2018
9:00 am The Effective Non-Executive Dire... @ The Plaza
The Effective Non-Executive Dire... @ The Plaza
Jun 12 @ 9:00 am – 4:30 pm
The Effective Non-Executive Director – Liverpool 12 June 2018 @ The Plaza
The effective Non-Executive Director course helps you to be an effective non-executive director. It instils a real sense of what is expected of NEDs, and how you can meet the challenge. This one-day interactive course is aimed[...]

Welcome to Corporate Governance UK

Corporate Governance UK

corporate governanceDefinition

“Corporate governance is the system by which businesses are directed and controlled.”
(Cadbury Report, UK)
 
“Corporate governance is one key element in improving economic efficiency and growth as well as enhancing investor confidence. Corporate governance involves a set of relationships between a company’s management, its board, its shareholders and other stakeholders. Corporate governance also provides the structure through which the objectives of the company are set, and the means of attaining those objectives and monitoring performance are determined. Good corporate governance should provide proper incentives for the board and management to pursue objectives that are in the interests of the company and its shareholders and should facilitate effective monitoring.”
(OECD Principles, 2004, Preamble)
 
“The purpose of corporate governance is to facilitate effective, entrepreneurial and prudent management that can deliver the long-term success of the company.”
(UK Corporate Governance Code)

Why is Corporate Governance important?

“The country’s economy depends on the drive and efficiency of its companies. Thus, the effectiveness with which their boards discharge their responsibilities determines Britain’s competitive position”
(Cadbury)

UK Corporate Governance Code

The  UK Corporate Governance Code (formerly the Combined Code) sets out standards of good practice in relation to board leadership and effectiveness, remuneration, accountability and relations with shareholders.

All companies with a Premium Listing of equity shares in the UK are required under the Listing Rules to report on how they have applied the Code in their annual report and accounts. The relevant section of the Listing Rules can be found at: http://fsahandbook.info/FSA/html/handbook/LR/9/8.

The Code contains broad principles and more specific provisions. Listed companies are required to report on how they have applied the main principles of the Code, and either to confirm that they have complied with the Code’s provisions or – where they have not – to provide an explanation. Some of the provisions of the Code require disclosures to be made in order to comply with them. These are summarised in Schedule B to the Code.

The new edition of the Code was published in September 2012 and applies to reporting periods beginning on or 1 October 2012.

Companies reporting on reporting periods beginning before 1 October 2012 should continue to report against the June 2010 edition of the  Code, although they are encouraged to consider whether it would be beneficial to adopt some or all of the new provisions in the revised code earlier than formally expected.

The FRC also publishes guidance to boards and board committees to assist them in considering how to apply the Code to their particular circumstances. There are different pieces of guidance addressing board effectiveness, the role of the audit committee, risk management and internal control and going concern and financial reporting.

The Code and guidance can be downloaded from the FRC website. Printed copies can be obtained free of charge from FRC publications, tel: 020 8247 1264, email: customer.services@cch.co.uk and online at: www.frcpublications.com.

2012 changes to the Code

The revised Code issued in September 2012 follows a consultation exercise seeking views on whether to amend the UK Corporate Governance Code and the associated  Guidance on Audit Committees.

The differences between the 2010 and 2012 editions of the Code are summarised in the Appendix to the  feedback statement on that consultation.

Click here to view the Consultation document and responses to the consultation.

The revised Code also incorporates changes originally announced in October 2011 following consultation on whether it intended to amend the UK Corporate Governance Code to require companies to publish their policy on boardroom diversity and report against it annually, as recommended by Lord Davies in his ‘Women on Boards’ report published in February 2011.

Summary
Corporate Governance UK
Article Name
Corporate Governance UK
Description
The purpose of corporate governance is to facilitate effective, entrepreneurial and prudent management that can deliver the long-term success of the company
Author