Governance in brief — 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 changes are far-reaching in some areas and reflect the Prime Minister’s broad social reform agenda and desire to restore trust in UK business.
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.
The choice of three workforce engagement mechanisms requested by the Government (a director appointed from the workforce, a formal workforce advisory panel or a designated non-executive director) have been inserted together with clarity around board responsibility for workforce policies and practices.
The new Code applies for periods commencing on or after 1 January 2019.
