More scrutiny on the way for ‘comply or explain’
The UK’s governance watchdog is to scrutinise the explanations given by companies for ignoring the country’s governance code.
Sir Win Bischoff, chairman of the Financial Reporting Council (FRC), revealed the work during a speech at the annual Grant Thornton Governance Dinner, suggesting there is concern with the way companies manage the UK’s "comply or explain" governance approach.
“The 'comply or explain' method of adherence has given companies flexibility and has made it possible to set more demanding standards than can be done through hard rules,” said Bischoff.
“Experience has shown that the vast majority of companies attain these standards—in 2014 we found that 94% of companies complied with all, or all but one or two, of provisions in the UK Co
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