CRW Accountants

The Mews, Queen Street
Colyton, Devon, EX24 6JU
This email address is being protected from spambots. You need JavaScript enabled to view it.
Tel: 01297 553286

Search News


Corporate governance reforms announced

Source: Department for Business, Innovation and Skills | | 04/09/2017

The government has issued its response to its consultation which started in November 2016 on corporate governance reform. Its response document sets out proposals for a “world-leading package” of corporate governance reforms which it now intends to take forward to increase boardroom accountability and enhance the public’s trust in business. The key reforms are:

  • Executive pay – for the first time, new secondary legislation will require listed companies to publish and explain, on an annual basis, the pay ratios between their chief executives and the average pay of their UK workforce. All listed companies with significant shareholder opposition (i.e. 20% or more of shareholders) to executive annual pay packages will also have their names published on a new public register.
  • Strengthening the employee, customer and supplier voice – new measures will seek to ensure the employee voice is heard in the boardroom of listed companies. Firstly, the UK Corporate Governance Code will be amended by the Financial Reporting Council (FRC) to require listed companies to either assign a non-executive director to represent employees, create a formal employee advisory council or nominate a director from the workforce. Secondly, through secondary legislation, all companies of a significant size (private as well as public) will have to publicly explain how their directors take employees’, shareholders’ and wider stakeholders’ interests into account in pursuing the success of the business.
  • Corporate governance in large privately-held businesses – the FRC will be asked to work with the business community and the government to develop a voluntary set of corporate governance principles for large private companies. In addition, secondary legislation will require companies of a significant size to disclose their corporate governance arrangements in their Directors’ Report and on their website.

The government intends to bring any legislative reforms into effect by June 2018 (to apply to company reporting years commencing on or after that date) and the FRC intends to consult on amendments to the UK Corporate Governance Code in late Autumn 2017 with a view to publishing a revised code by mid-2018. The work on developing voluntary corporate governance principles for large private companies will commence in Autumn 2017.

Latest News

  • Date announced for Autumn Budget 2017

    12/09/2017 - More...

    The Chancellor has announced that the Autumn Budget 2017 will be held on Wednesday, 22 November 2017. The announcement was made on the GOV.UK website and included a video message

  • Reduction in dividend allowance confirmed

    12/09/2017 - More...

    Now that the second Finance Bill of 2017 has been published, we finally have confirmation that a number of measures announced earlier this year are to be included on the statute

  • Making Tax Digital

    12/09/2017 - More...

    The new timetable for the introduction of Making Tax Digital (MTD) has been confirmed with the publication of the second Finance Bill. The MTD regime was originally due to start

 

 

           

Copyright © 2017 - CRW Accountants

designed by Zoe Adele Parsons MA

Cookie Policy