UK Financial Reporting Council publishes New Guidance on Board Effectiveness

The UK Financial Reporting Council (FRC) published in March a new guidance to encourage the boards of listed companies to consider how they can lead their companies most effectively.

'Guidance on Board Effectiveness' is one of a series of guidance notes issued by the Financial Reporting Council to assist companies in applying the principles of the UK Corporate Governance Code. It reflects the changes that were made to the Code in 2010, such as the greater emphasis placed on the role of the chairman and the importance of getting the right balance on the board.

The guidance relates to the sections of the Code that deal with leadership and the effectiveness of the board, and addresses issues such as: the roles of the chairman, senior independent director, other directors and the company secretary; decision-making policies and processes; board composition and succession planning; and evaluating the performance of the board and directors.

International developments and trends in governance will be of interest to all Members, and we invite examination of this paper and its input to Board Effectiveness.

Please click here to download a copy of the report.

 

Bruce Butler, FCIS
Executive Officer

30 March 2011