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AIM Market corporate governance reporting changes

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United Kingdom

With effect from 28 September 2018, AIM companies have been required to disclose on their website which corporate governance code they have decided to apply and to explain how they comply with that corporate governance code and, where they depart from that code, providing an explanation of their reasons for doing so.

The Exchange confirmed the introduction of this "comply or explain" obligation in relation to a recognised corporate governance code on 8 March 2018 to give companies time to implement the new requirements. With effect from 28 September 2018, AIM companies will have to review their corporate governance disclosures annually. It is expected that the review will take place at the same time as companies produce their annual report and accounts.

Each company's website must include the date of the last review of its compliance with its chosen code, and they must update their AIM Rule 26 disclosures to ensure they remain accurate.

The Exchange has not prescribed a list of recognised codes, allowing AIM companies a range of choices to suit their stage of development, sector and size. They have, however, referred to the QCA Corporate Governance Code and the UK Corporate Governance Code as established benchmarks, and said that companies which are dual listed in their home state may report using an appropriate standard in their home jurisdiction.

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