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The Financial Reporting Council has now issued its "Guidance on Board Effectiveness" to assist companies in applying the principles of the UK Corporate Governance Code.
The new guidance follows a review by the Institute of Chartered Secretaries and Administrators of the "Good Practice Suggestions from the Higgs Report" guidance note last published by the FRC in June 2006, and which note is now superseded.
The new guidance is not intended to be prescriptive, and instead is aimed at stimulating boards to think about how to carry out their role most effectively. It reflects the changes that were made to the Code (formerly known as the "Combined Code on Corporate Governance") in 2010, including the greater emphasis placed on the role of the chairman and the importance of getting the right balance on the board. The main focus is on sections A (Leadership) and B (Effectiveness) of the Code, though matters such as audit, risk and remuneration, and relations with shareholders, are also addressed.
A copy of the new guidance can be found on the FRC website.