The Financial Reporting Council (FRC) in the UK has announced a review of the impact of the Combined Code on Corporate Governance, which sets out best practice corporate governance standards for UK listed companies.
The FRC is inviting views on any aspect of the Code, but in particular on:
- The composition and effectiveness of the board as a whole;
- The respective roles of the chairman, the executive leadership of the company and the non-executive directors;
- The board’s role in relation to risk management;
- The role of the remuneration committee;
- The quality of support and information available to the board and its committees;
- The content and effectiveness of Section 2 of the Code, which is addressed to institutional shareholders.
The FRC is also seeking views on how the operation of the ‘comply or explain’ mechanism could be improved. It requires boards to provide investors with the necessary information on which to make that judgement, and a sufficient number of investors to engage constructively with the companies in which they invest through dialogue and the use of their voting and other rights.
Views are sought from listed companies, directors, investors and other interested parties by 29 May 2009.