The Government has now Responded to Proposed Corporate Governance Reform!
The Department for Business, Innovation and Skills has now published the government's response to the Green Paper consultation on corporate governance reform. Within the response there are a number of proposals for reform which cover:
- Shareholder voting, the role of remuneration committees, and transparency with regards to executive pay;
- Drastically increasing the employee, customer and supplier voice within businesses; and
- More stringent corporate governance in large privately-held businesses.
The Financial Reporting Council will now consult on the various reforms in order to go about implementing these changes into the Corporate Governance Code. After this process, the government will then ask Parliament for further secondary legislation in order for these reforms to be sufficiently implemented in statute, if and when required. The government’s current timetable for when all these various reforms will become effectual is June 2018.
This bulletin is for general guidance purposes only and should not be used for any other purpose.
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