The UK Corporate Governance Code
The first version of the UK Corporate Governance Code (the Code) was published in 1992 by the Cadbury Committee. Over the years the Code has been revised and expanded to take account of the increasing demands on the UK’s corporate governance framework.
At the heart of this Code is an updated set of Principles that emphasise the value of good corporate governance to long-term sustainable success. The Code argues that by applying the Principles, following the more detailed provisions and using the associated guidance, companies can demonstrate throughout their reporting how the governance of the company contributes to its long-term sustainable success and achieves wider objectives.
Achieving this depends crucially on the way boards and companies apply the spirit of the Principles. The Code does not set out a rigid set of rules; instead it offers flexibility through the application of Principles and through ‘comply or explain’ Provisions and supporting guidance. It is the responsibility of boards to use this flexibility wisely and of investors and their advisors to assess differing company approaches thoughtfully.
Please click here to access the 2018 Code, is accompanied by updated guidance on board effectiveness and UK Corporate Governance Code 2018 highlights.