The Financial Reporting Council (FRC), last Tuesday, released an updated version of the Combined Code on Corporate Governance, the voluntary code by which many UK-listed companies currently operate. Although changes are small, there are enhancements to the need for website information and this release is likely to strengthen the case for the Combined Code becoming the legal requirement.
The FRC is the UK's independent regulator for corporate reporting, auditing and actuarial practices and governance and, in the Combined Code sets out recommended practices for UK listed companies. Although not yet compulsory, listed companies are required under the UK Listing Authority's Listing Rules to follow the provisions of the Combined Code or provide an explanation in their annual report of why they have not done so (known as "comply or explain").
The changes in this release of the Combined Code, first released in 2003, effect remuneration committees, the treatment of "votes withheld" and proxy voting at shareholder meetings plus a publication of board committee terms of reference
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