The Financial Reporting Council has today published a revised edition of the UK's Corporate Governance Code (formerly known as the Combined Code): see here (pdf). The new Code applies to financial years beginning on or after 29 June 2010. A short summary of some of the changes included in the new edition is provided in the accompanying press release and more detailed information is available in the report on the consultation process leading to the publication of the new Code: see here (pdf).
The changes include a new provision (B.7.1) concerning directors' election: "All directors of FTSE350 companies should be subject to annual election by shareholders". With regard to gender diversity, a new supporting principle provides that "[t]he search for board candidates should be conducted, and appointments made, on merit, against objective criteria and with due regard for the benefits of diversity on the board, including gender".
In its press release, the FRC states that it intends to publish its Stewardship Code for Institutional Investors by the end of next month. Further background on the review leading to the new Code is available here.
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