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FRC: Annual Review of Corporate Governance

The report highlights areas of high-quality reporting, however, there is still room for further improvement in areas such as substantive disclosures on Board appointments, succession planning and diversity.

The report also found that more focus on reporting the effectiveness of internal control and risk management systems would enhance the level of confidence in the company’s control framework.  

There continues to be a need for greater clarity as to how a company is applying the Code’s principles as well as clearer explanations where there are departures from the Code so that shareholders and stakeholders have greater confidence of the quality of governance.

The review highlights, now more than ever, the continuing need for high quality governance which is linked to effective decision-making by company’s Boards and management. The Government’s audit and corporate governance reform proposals Restoring Trust in Audit and Corporate Governance is an important next step in ensuring that all stakeholders can rely on high quality corporate governance in the UK.

To read more of the FRC Report click on the link.


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