FRC publishes its 2016 corporate governance review paper.
The Financial Reporting Council has this week published its latest corporate governance review paper. Entitled, Developments in Corporate Governance Stewardship 2016, the paper can be accessed via the FRC website or by following this link
To quote from the foreword to the report, 'UK corporate governance is strong but needs to evolve. The landscape of corporate governance is changing and there is more we can do to improve trust in business and promote a strong economy.'
Of particular interest are the recommendations that the FRC is making in response to the Government's recently published Corporate Governance Green Paper; these include:
- monitoring governance information in annual reports,
- requiring governance reporting by large private companies,
- improving reporting by companies about the elements of Section 172 of the Companies Act 2006, and
- taking action against directors who are not members of the professional bodies that the FRC oversees.
This report is essential reading!!