Britain’s audit watchdog revises corporate governance code
Britain’s audit and accounting watchdog has overhauled its corporate governance code for UK companies, it said on Wednesday, to make them safer for investors by giving more information about how they are run and an assessment of any potential risks facing the business.
Furthermore, the Financial Reporting Council (FRC) aims to foster new rules over risk management, remuneration policy and shareholder engagement.
“The changes to the Code are designed to strengthen the focus of companies and investors on the longer term and the sustainability of value creation,” said FRC Chief Executive Stephen Haddrill in a statement.
Among the changes companies will need to “robustly assess” the main risks facing their business and explain how they are being managed or mitigated, the FRC said in a statement.
In particular it said companies “should state whether they believe they will be able to continue in operation and meet their liabilities taking account of their current position and principal risks, and specify the period covered by this statement and why they consider it appropriate.
“It is expected that the period assessed will be significantly longer than 12 months,” the FRC added.
Source: reuters- Britain’s audit watchdog revises corporate governance code
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