Thursday, 3 March 2011

UK: board effectiveness - new guidance from the Financial Reporting Council

The Financial Reporting Council has today published Guidance on Board Effectiveness which replaces the Good Practice Suggestions from the Higgs Report (2006): see here (pdf). The new guidance complements existing guidance published by the FRC and is intended to assist boards in their application of the principles of the UK Corporate Governance Code. The guidance is principally concerned with Sections A and B of the Code (leadership and effectiveness of the board) and, as the FRC has stressed, it is not intended to be prescriptive but to encourage board discussion over regarding the company's governance arrangements.

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