Sharper Governance With The New UK Code

A leaner UK Corporate Governance Code seeks to refocus attention on the objective of governance, rather than merely ticking boxes

On 16 July, the Financial Reporting Council (FRC) published the 2018 revision of the UK Corporate Governance Code, which will come into effect from 1 January 2019.

Companies should note that although reporting will not be required against the new code until 2020, they will be expected to apply the new provision requiring an explanation of proposed actions in the event that a resolution receives less than 20% support at the 2019 annual general meeting.

The new code is shorter and sharper than the existing one, with a greater focus on the application of its principles rather than on compliance (or the explanation of non-compliance) with its provisions.