The Financial Reporting Council (FRC) has published proposals for a revised UK Corporate Governance Code to help UK companies achieve higher levels of governance.
The FRC says the code is shorter and sharper and builds on the findings from the FRC’s Culture Report published in 2016.
The revised Code focuses on the importance of long-term success and sustainability, addresses issues of public trust in business and aims to ensure the attractiveness of the UK capital market to global investors through Brexit and beyond.
The revised Code sets out good practice so that the boards of companies can, for instance undertake effective engagement with wider stakeholders, to improve trust and achieve mutual benefit, and to have regard to wider society.
It also calls for appointments to boards and succession plans to be based on merit and objective criteria to avoid group think, and promote diversity of gender, social and ethnic backgrounds, cognitive and personal strengths.
Remuneration committees should take broader responsibility for overseeing how remuneration and workforce policies align with strategic objectives.