Financial Times (June 7)
“’Shock revelation. Investors do read annual reports and base their investment decisions on what they find there,’ was the gist of a dismal report by the Financial Reporting Council last week into the quality of accounts of small public companies.” The report found that many companies did not, but really ought to, sufficiently prioritize their annual reports. “The FRC is right. Informative and comprehensive explanations of how the corporate year has shaped up are critical to keeping investors onside.”
Tags: Annual reports, Comprehensive, Explanations, FRC, Informative, Investment decisions, Investors
Financial Times (May 28)
The Financial Reporting Council (FRC) has “set a new high watermark for post-crises governance standards.” The largest 350 listed companies in the UK (the FTSE 350) are now asked to hold annual elections for each director. They are also being encouraged to adopt more diverse boards (only 12% of FTSE 100 directors are women) and utilize external reviews of board effectiveness on at least a triennial basis. Lastly, the new code makes clear that boards are responsible for risk management. This summer, the FRC will release a Stewardship code outlining the responsibilities of shareholders.
The Financial Reporting Council (FRC) has “set a new high watermark for post-crises governance standards.” The largest 350 listed companies in the UK (the FTSE 350) are now asked to hold annual elections for each director. They are also being encouraged to adopt more diverse boards (only 12% of FTSE 100 directors are women) and utilize external reviews of board effectiveness on at least a triennial basis. Lastly, the new code makes clear that boards are responsible for risk management. This summer, the FRC will release a Stewardship code outlining the responsibilities of shareholders.
Tags: Boards, FRC, FTSE 350, Governance code, Stewardship