The UK is witnessing a battle to restore trust in business – after a succession of corporate collapses, governance failings and controversial pay awards have hit the headlines.
As a result, governance is again in the spotlight, more so than at any time since the ‘Maxwell years’ which immediately preceded the 1992 Cadbury report.
Given this climate, companies are facing a series of government and regulatory initiatives. Businesses have already had to grapple with the reporting requirements of the EU non-financial reporting directive, the new Guidance on the Strategic Report, and the Companies (Miscellaneous Reporting) Regulations 2018.
And in July, the Financial Reporting Council (FRC) published its new ‘shorter, sharper’ UK Corporate Governance Code which, among other things:
- emphasises better – rather than more – disclosure, focusing on how companies apply its main principles
- has fewer provisions
- recognises the shared interests of boards, shareholders and wider stakeholders.