8 November, 2018
1. The Financial Reporting Council (FRC) has published a report on board diversity reporting. Under the current 2016 UK Corporate Governance Code, companies are required to provide a description of the nomination committee’s process for board appointments, the board’s policy on diversity including gender, measurable objectives set for implementing that policy and progression achieving the objectives. The report focuses on five main topics - board diversity policy, monitoring diversity, succession planning and diversity, board evaluation and diversity and building diversity into the executive pipeline. A copy of the report Board Diversity Reporting can be found at www.frc.org.uk
2. In October the GC100 published guidance on the interpretation of section 172 of the Companies Act 2006 Guidance on Directors’ Duties Section 172 And Stakeholder Considerations. The aim of the guidance is to give directors pragmatic steps to perform this particular duty which is to promote the success of the company. This guidance supplements the GC100 guidance published in 2007 when the statutory duties of directors came into force.
3. The FRC has published a new report Reporting by Smaller Listed and AIM Quoted Companies. The FRC reviewed the reports and accounts of 40 smaller listed and AIM quoted companies to consider the following topics – alternative performance measures and strategic reports, pension disclosures, accounting policies (including critical judgements and estimates), tax disclosures and cash flow statements. The review carried out identified some better examples of smaller companies’ disclosures but also several areas requiring improvement. The report can be found at www.frc.org.uk
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