FRC welcomes wide-ranging consultation
29 November 2016
The UK is acknowledged as a leader in corporate governance and has attracted significant international investment as a result. We need to ensure that high standards of governance continue to support investment. Companies also need to fulfil their responsibilities to a wider range of stakeholders and society. The FRC will consult to update the UK Corporate Governance Code and associated guidance in 2017 to address these issues.
We have already made recommendations to the BEIS Select Committee corporate governance inquiry. These include company directors reporting on their responsibilities under section 172 of the Companies Act 2006, developing the role of the remuneration committee and what happens when there are significant votes against the remuneration report, and ensuring that boards take account of a more diverse range of views in their decision-making. The FRC stands ready to develop and implement these proposals to help support a strong economy and meet the needs of wider society.