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Shorter and Sharper: The UK Streamlines its Corporate Governance Regime

Shorter and Sharper: The UK Streamlines its Corporate Governance Regime

The UK’s resolution for 2019 is to trim down its Corporate Governance Code. And it starts this summer. 

On December 5, 2017, the UK's Financial Reporting Council (FRC) put forth proposed revisions to the Corporate Governance Code (the Code) which are slated to be introduced early this summer and set in motion on January 1, 2019. The FRC's goal is to make the Code “shorter and sharper” with supporting principles either removed and incorporated into new principles and provisions or into supplementary guidance. The revisions address director independence, executive remuneration and stakeholder engagement, with a particular emphasis on ensuring the views of the workforce are heard at board level.

If adopted, the revisions will necessitate significant alterations to board practices and corporate reporting in the UK and Ireland. Companies will need to consider the implications as soon as possible to ensure compliance by 2019 and effectively communicate the changes through strong reporting in the first annual report after the revised Code is finalized. Those companies that drag their feet could face dissent from institutional shareholders and proxy advisors, both of whom use the Code as clear guidance for what constitutes best practice.

For companies looking to get out ahead, this memo, recently published in Harvard Law School Forum, provides crucial guidance.

Published February 2018

© Copyright 2018. The views expressed herein are those of the author(s) and not necessarily the views of FTI Consulting, Inc., its management, its subsidiaries, its affiliates, or its other professionals.

About The Authors


Peter Reilly
Peter.Reilly@fticonsulting.com
Director of Corporate Governance
Strategic Communications
FTI Consulting

Jonathan Neilan
jonathan.neilan@fticonsulting.com
Managing Director
Strategic Communications
FTI Consulting

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Strategic Communications
With more than 25 years of experience advising management teams in critical situations, the Strategic Communications practice of FTI Consulting has a broad network of relationships with key influencers, and provides communications counsel based on in-depth industry knowledge and experience.
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The views expressed in this article(s) are those of the author and not necessarily those of FTI Consulting, Inc., or its professionals.
©Copyright, FTI Consulting, Inc., 2012. All rights reserved.

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