Eleanor Baxter reviews the evolving corporate governance environment
As listed public companies prepare for their 2011 AGMs, they will need to take stock of the many recent and ongoing developments in the field of corporate governance.
2010 saw the revision of the Combined Code following its review by the Financial Reporting Council (the FRC). The renamed UK Corporate Governance Code (the Code) applies to companies with financial years beginning on or after 29 June 2010, so will soon universally apply to listed companies. While the Code did not mark a complete overhaul of the recommended governance framework under the Combined Code, which was found to be largely fit for purpose, there have been a number of key, and some controversial, changes including:
- the recommendation of the annual re-election of all directors of FTSE 350 companies;
- the requirement to give due regard to the benefits of diversity on the board, including gender;
- the emphasis throughout the Code on the need for links between remuneration, individual performance and the long-term success of the company; and
- the introduction
