Essay about Major Developments Within The Uk
The European Commission published an Action Plan in 2012 with initiatives to modernise company law and the corporate governance framework. The Action Plan identified three main lines of actions following the review process, namely, enhancing transparency, engaging shareholders and supporting companies’ growth and competitiveness. The report was aimed at member states where compliance with the codes is less effective because of weak explanations and monitoring by companies.
In the UK, the tasks of embedding high standards of governance are continuously reviewed at least every two years. To mark the 20th anniversary of the Cadbury report in 2012, the FRC recognised that some changes may need to be made to the Code provisions to reflect latest legislative changes and to improve corporate practice at national level, with allusion to disclosures. This section will cover the revision of the Code in 2012 followed by a transposition to the Corporate Governance Code 2014 and until more recently, the miscellaneous amendments instrument 2015.
3.1 MODERNISATION OF CORPORATE GOVERNANCE IN 2012
In April 2012, the FRC proposed a number of changes to the Governance Code 2010 with detailed explanations on the ‘comply or explain’ approach to help companies understand what is expected of them when they choose to deviate from the provisions of the Code. At the same time, they provided shareholders with a benchmark against…