ICSA responds to Financial Reporting Council consultation on proposed revisions to the UK Corporate Governance Code.

In this month’s G&C magazine, Peter Swabey, Policy and Research Director at ICSA: The Governance Institute, summarises the Institute’s response to the proposed changes as part of the consultation process.

The Institute welcomes the focus on the purpose of Corporate Governance, the application of the code’s principles and their use to underpin the long term health of the company as opposed to a box ticking exercise in compliance against the various provisions.

The submission also commends the FRC for retaining the focus on the ‘comply or explain’ model rather than seeking to impose further rules.

The ICSA submission addresses:

• the proposal that the proposed definition relating to the function of the board does not accurately reflect the duties of a director
• stakeholder engagement specifically referring to the workforce
• the focus on the Chair being classified as an independent director
• the additional burden that could occur in smaller companies by removing the exemption to annually elect directors
• the proposed wider remit of the remuneration committee
• the stewardship code and the potential for confusion with having two codes in place
• the guidance on board effectiveness.

To see the article from the March edition of G&C in full please read here.