Tuesday, 23 October 2012

UK: annual reports, the chairman's statement and the role and effectiveness of the board

Grant Thornton has published the findings of research looking at governance related disclosures in the chairman's statement within 242 annual reports: see here (pdf). The research found, amongst other things, that a quarter of the reports did not include any comment by the chairman on governance. The preface to the UK Corporate Governance Code 2010, in paragraph 7, states: "Chairmen are encouraged to report personally in their annual statements how the principles relating to the role and effectiveness of the board (in Sections A and B of the new Code) have been applied".

Grant Thornton's research forms part of its FTSE 350 Corporate Governance Review 2012 which will be published in December 2012.

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