Investors voting by proxy have been given the option of withholding their vote in the Financial Reporting Council’s update of the Combined Code which followed a consultation on possible changes that emerged from its review of the Code's implementation last year.
The FRC said a vote withheld is not a vote in law and would be be counted in the calculation of the proportion of the votes for and against the resolution.
The update to the 2003 Code offers no objection to the chairman sitting on the remuneration committee if he is considered independent on appointment It also recommends that companies publish on their website the details of proxies lodged on resolutions where votes are taken on a show of hands. The Company Law Reform Bill currently going through parliament requires companies to publish details of votes taken on a poll.
The changes to the Code also enables companies to meet the requirement to make the terms of reference of board committees available by placing them on their website.
See full http://www.manifest.co.uk/manifest_i/2006/0607July/standards/0607standardscode.htm.
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