FRC: many firms ‘not transparent about their compliance with UK code’
Issues identified include difficulties in describing how stakeholder interests are considered and failure to limit the tenure of board chairs.
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Companies appear to be struggling with governance provisions aimed at managing stakeholder engagement and measures to limit the term of board chairs.
The news comes in new guidance from the Financial Reporting Council (FRC), the UK governance watchdog, in which it spells out how to meet the corporate governance code’s principle of “comply or explain”, and calls for more transparency in reporting.
In offering advice on reporting, the FRC shines a spotlight on areas where companies encounter most difficulty. This follows a report last November in which the FRC took a close look at compliance with the UK code.
According to the new
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