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03 March 2011

FRC published Guidance on Board Effectiveness


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The FRC published new guidance to encourage the boards of listed companies to consider how they can lead their companies most effectively. The new guidance replaces ‘Good Practice Suggestions from the Higgs Report’ (known as the Higgs Guidance), which has been withdrawn.


‘Guidance on Board Effectiveness’ is one of a series of guidance notes issued by the FRC to assist companies in applying the principles of the UK Corporate Governance Code. It reflects the changes that were made to the Code in 2010, such as the greater emphasis placed on the role of the chairman and the importance of getting the right balance on the board.
The guidance relates to the sections of the Code that deal with leadership and the effectiveness of the board, and addresses issues such as: the roles of the chairman, senior independent director, other directors and the company secretary; decision-making policies and processes; board composition and succession planning; and evaluating the performance of the board and directors.

Press release


© FRC

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