|
The paper, which is based on discussions between senior company and investor representatives facilitated for the FRC by the London Business School, notes a very high level of compliance with the UK Governance Code. It says that a large majority of companies who do not comply with one or more provisions of the Code provide a full explanation of their reasons. However, a minority does not and the paper is intended to help address this by setting out clearly what practitioners expect.
Key elements of an explanation identified in the discussion are that it should:
Participants in the discussion also felt that the starting point should be an improvement in the general quality of disclosure around corporate governance and a clear articulation by each company of how its governance arrangements support its business model.