UK: GC100 guidance on the duty of directors to promote the success of the company

GC100 - the "voice of general counsel and company secretaries working in FTSE 100 companies" - has published guidance on the duty imposed on all directors to promote the success of the company under section 172 of the Companies Act 2006: see here (pdf). A copy of the news release accompanying the guidance is available here (pdf).

The GC100 was invited to publish its guidance as one of the outcomes of the Government's corporate governance reform green paper. The guidance focuses on how to comply with the section 172 duty, in particular the requirement, in promoting the success of the company for the benefit of its members, to have regard to various factors including the interests of the company's employees, the impact on the community and environment and the need to act fairly as between members of the company.

UK: FRC draft plan and budget 2017/18

The Financial Reporting Council yesterday published for public comment its draft plan and budget for 2017/18: see here (pdf). The document states that improvements are needed in the operation and enforcement of the UK Corporate Governance Code (for which the FRC is responsible). The same is said about relevant law and regulation. Potentially significant changes to the Code may be required. The FRC also says that it will seek to involve a wider group of stakeholder in its work next year.  In this regard I have a suggestion: is it time for the FRC to review its own governance arrangements including the composition of its board?

UK: Government publishes corporate governance reform green paper

The much anticipated green paper on corporate governance reform was published this afternoon by the Government: see here (pdf). The paper seeks views on options for reform in three areas: the influence of shareholders on executive pay; the connection between boards and stakeholders including employees and small suppliers; and the extent to which governance norms that currently apply to large listed companies should be extended to the largest privately held companies.

UK: Government green paper on corporate governance

The Financial Times newspaper reports that the Government's green paper on corporate governance will be published tomorrow and that this will set out proposals for, amongst other things, an advisory role for worker representatives on remuneration committees and the mandatory publication of pay ratios.