FRC issues new UK Corporate Governance Code
The FRC has published the new UK Corporate Governance Code together with revised Guidance on Board Effectiveness. The new Code applies for periods commencing on or after 1 January 2019.
Changes to the new Corporate Governance Code
Key changes include new principles and provisions on company purpose, stakeholder engagement, corporate culture, plus stricter requirements around board independence and the length of tenure of the chairman.
This is not a tweaking of the Code as in previous years but a substantial re-write and simplification/reduction with the idea at its foundation that the focus of the revised Code is the company’s approach to governance through the application of the Code principles – principles which emphasise the value of good corporate governance to long-term success.