EXECUTIVE SUMMARY
The purpose of the Code is to promote good governance in the belief that this will support the long-term success of the company. It should not be viewed as a compliance exercise by companies or investors. A prime objective of this review has been to refocus attention on the underlying principles.
While the Combined Code and its related guidance require some updating, it remains broadly fit for purpose. The flexibility it allows remains preferable to a more prescriptive framework for corporate governance.
The principles of the Code are intended to encourage appropriate board behaviours. If complying with one of the Code’s provisions will make it more difficult for the company to follow one of its principles, it should exercise its right not to comply, but should give a clear explanation to its shareholders of why it has reached that view.
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