preview

Uk Cg Code

Better Essays
Code Corporate Governance Financial Reporting Council September 2012 The UK Corporate Governance Code The FRC does not accept any liability to any party for any loss, damage or costs howsoever arising, whether directly or indirectly, whether in contract, tort or otherwise from any action or decision taken (or not taken) as a result of any person relying on or otherwise using this document or arising from any omission from it. Contents Page Governance and the Code 1 Preface 2-3 Comply or Explain 4-5 The Main Principles of the Code 6-7 Section A: Section B: Section C: Section D: Section E: Leadership Effectiveness Accountability Remuneration Relations with shareholders 8-10 11-16 17-20 21-23 24-25 Schedule A: The design of…show more content…
Absolutely key in this endeavour are the leadership of the chairman of a board, the support given to and by the CEO, and the frankness and openness of mind with which issues are discussed and tackled by all directors. 4. The challenge should not be underrated. To run a corporate board successfully is extremely demanding. Constraints on time and knowledge combine with the need to maintain mutual respect and openness between a cast of strong, able and busy directors dealing with each other across the different demands of executive and non-executive roles. To achieve good governance requires continuing and high quality effort. 5. The Code’s function should be to help boards discharge their duties in the best interests of their companies. In recent reviews of the Code, the FRC has focussed on changing the “tone” of the Code by making limited but significant changes to signal the importance of the general principles which should guide board behaviours. It is to be hoped that these changes will promote greater clarity and understanding with regard to the tasks of a board and that communication with shareholders will be more effective as a result. 6. Chairmen are encouraged to report personally in their annual statements how the principles relating to the role and effectiveness of the board (in Sections A
Get Access