Tuesday, 11 October 2011

UK: gender diversity on boards - proposed changes to the UK Corporate Governance Code

The Financial Reporting Council has today published a feedback statement in response to its recent consultation on board gender diversity: see here (pdf). The FRC is proposing to amend the UK Corporate Governance Code to require companies to include in their annual report a description of the board's policy on diversity, including any measurable objectives that have been set and progress towards meeting those objectives. A further amendment to the Code will provide that board evaluation should consider its diversity, including gender.

These changes will be included in a new edition of the Code which will apply to financial years beginning on or after 1 October 2012. This new edition has not yet been published because it is the FRC's intention to consult on further changes to the Code, with respect to audit committees and audit tendering, in early 2012.

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