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25 June 2018
The UK will be getting a revised Corporate Governance Code, most likely effective January 2019.
The House of Commons Library has published a briefing paper on Corporate Governance Reform. The briefing paper provides an overview of the corporate governance framework in the UK, including the history of the UK corporate governance code (UKCG Code) and the interaction of the UKCG Code with directors' duties under the Companies Act 2006 (CA 2006). The paper also provides an overview of the reforms announced by the government in August 2017 and provides an update on timescales.
The government is keen to strengthen corporate governance in 3 particular areas:
The Financial Reporting Council is currently drafting a final version of the revised UKCG Code, intending to publish it this summer with it applying to accounting periods beginning on or after 1 January 2019.
The draft revised Code contains 17 principles and is about half the size of the current UKCG Code. Some of the current Supporting Principles have been transferred to the Guidance on Board Effectiveness while others have been dropped. The effect is to highlight the Main Principles of the revised Code.
Of particular note are the following points:
For further information on this topic please contact Adam Hastings at Squire Patton Boggs by telephone (+44 113 284 7000) or email (firstname.lastname@example.org). The Squire Patton Boggs website can be accessed at www.squirepattonboggs.com.
This update has been reproduced in its original format from Lexology – www.Lexology.com.
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