EMBARGOED UNTIL 0001 FRIDAY 28 MAY 2010
Government today welcomed new measures to encourage
accountability, diversity and improved performance in Britain’s
boardrooms, as the Financial Reporting Council launched a revised
Corporate Governance Code.
The new measures include a recommendation that all directors of
FTSE 350 companies be put up for re-election every year and
promote the benefits of diversity in new appointments to the board.
Business Minister Edward Davey said:
“Corporate accountability and transparency is integral to
rebuilding public trust in the corporate sector and today’s new
Corporate Governance Code marks an important step towards
rebuilding that trust.
“Alongside the pledges this Government has made to encourage
gender equality on the boards of listed companies, these new
measures will help to encourage companies to play their part in
working towards the creation of a more responsible, fair and
transparent corporate society.”
Equalities Minister Lynne Featherstone said:
“Half of all consumers are female but only 12 per cent of FTSE
100 directors are, so I’m pleased to see the FRC recognising the
need to get more women into the boardroom. A more equal workplace
is a more successful workplace and the stronger provision on
gender diversity in the new Code is an important step towards
building a fair and equal society by tackling discrimination at work."
The UK Corporate Governance Code sets out standards of governance
for listed companies. Companies are required either to follow the
Code or explain how else they are acting to promote good
governance. The new edition of the Code will apply to financial
years beginning on or after 29 June 2010.
Notes to editors:
The UK Corporate Governance Code, formerly known as the Combined
Code, sets out standards of governance for listed companies. For
further information please see the Financial Reporting Council’s
website.
Contacts:
BIS Press Office
NDS.BIS@coi.gsi.gov.uk
Lucy Sutton
Phone: 020 7215 5977
Lucy.Sutton@bis.gsi.gov.uk