A new corporate governance code is all well and good, but will it be an improvement on the last? Only if it asks the right questions, argues Board Agenda’s Secret Ned.
HO HO HO! A belated Happy New Year. And what did Santa Claus bring you last Christmas? Oh, how wonderful, a new corporate governance code? You must have been so excited. Did you sit down and read it straight away? Or is it on your too-difficult pile, together with the last revision and the one before that?
Experienced non-executives will know that the revision process is likely to take some time and only the most diehard will contribute. I have to admit, it has not even hit the discussion agenda of my boards, let alone prompt any of my chairs to circulate a draft response.
What is the code for? Until we can answer that question,
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The controversy over Sir Nigel Rudd's multiple chairships is part of a trend of investors—and governance experts—challenging overboarding and questioning whether non-executive directors can meet their commitments.