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FRC to review the UK Corporate Governance Code

Print publication

04/04/2017

The Financial Reporting Council (FRC) has announced it is to undertake a fundamental review of the UK Corporate Governance Code (Code). The review will take account of the findings of the FRC’s corporate culture project and the issues raised in the government’s recent green paper on corporate governance reform.

The FRC will seek input from a wide range of stakeholders including its recently established ‘Stakeholder Advisory Panel’ of high profile representatives from a wide variety of sectors.

Speaking at the launch of the review, Sir Win Bischoff, Chairman of the FRC said, “The Prime Minister has a vision of an economy that, in her words, ‘works for everyone’. This needs UK businesses to thrive so that all stakeholders including workers, customers, suppliers and society itself benefit through jobs growth and prosperity. With all this in mind, we will conduct a review of the current UK Corporate Governance Code. This will consider the appropriate balance between the Code’s principles and provisions.  In pursuing any changes, the current strengths of UK governance: the unitary board, strong shareholder rights, the role of stewardship and the ‘comply or explain’ approach, must be preserved. Any changes to the regulatory frameworks and to the Code will be done carefully and through full consultation with a wide range of stakeholders.”

The outcome of the review is expected in late 2017.

WM comment

We will provide an update when the outcome of the review is published.

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