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Last published in 2010, the QCA Code has been revised and updated to take into account a number of corporate governance developments. Some key changes include:
The QCA Code is widely recognised as an industry standard for those growing companies for which the UK Corporate Governance Code is not applicable. This includes standard listed companies and those on AIM and the ICAP Securities and Derivatives Exchange.
The QCA Code adopts key elements of the UK Corporate Governance Code, current policy initiatives and other relevant guidance and then applies these to the needs and particular circumstances of small and mid-size quoted companies on a public market. Focusing on 12 principles and a set of minimum disclosures, the QCA Code encourages companies to consider how or whether they should apply each principle to achieve good governance and provide quality explanations to their shareholders about what they have done.
Baroness Hogg, Chairman of the Financial Reporting Council, comments: “I welcome the updated QCA guidelines which set out for smaller quoted companies how they can apply the principles of good governance in the UK Corporate Governance Code to their own circumstances. Well-run companies achieve sustained success and for that reason, as the QCA Code rightly emphasises, transparency and engagement with shareholders about how the company is governed can help to attract and retain investment.”
Tim Ward, Chief Executive, The Quoted Companies Alliance, comments: “Good governance is a key part of a company’s strategy for growth. When a small or mid-size public company puts in place good and effective governance arrangements, that company makes a bold statement that it wants to attract further investment. The QCA Code is a stepping stone for growing companies that will help them to deliver long term growth.”