Friday 27 November 2020

UK: FRC expresses disappointment with the overall quality of corporate governance reporting

In a report published yesterday, the Financial Reporting Council has expressed its disappointment with the overal quality of corporate governance reporting: see here (pdf). While noting some examples of good quality reporting in respect of the Corporate Governance Code 2018, the FRC nevertheless found - based on a sample drawn from companies of various size, as well research from other organisations - that "the objective of too many companies is to claim full compliance with the Code, which has led to the 'tick-box' practices we have tried to discourage ... We are concerned that an unexpectedly high number of companies in our sample claimed full compliance but could not demonstrate this in their reports ... We were surprised that in many cases corporate governance reporting was not coherent and cohesive".

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