'Increase' in fully compliant FTSE 350 firms

News Article - 21 January 2008
Category: Business

The number of FTSE 350 companies which claim full compliance with the UK's Combined Code has increased from 34 per cent to 41 per cent, it has been revealed.

Accountancy firm Grant Thornton found that although the number has risen during 2006-07, this still means that six in ten of the firms are not meeting the requirements.

Simon Lowe, head of business risk services practice at Grant Thornton, said: "Companies are aspiring to be compliant but they need to be more diligent in their responses in regard to attempts for compliance."

When detailing their claims, 11 out of the 125 accurately completed all of the disclosure requirements, the firm added.

Four per cent of the companies who did not comply gave no explanation and 34 per cent gave the minimum explanation, prompting Mr Lowe to suggest that they "may need to revisit their attitude to the principles of governance".

Last year, the Financial Reporting Council announced a number of possible changes to the Combined Code.

These included allowing chairs of FTSE 350 firms to become a member of, but not chair, the audit committee, subject to independent requirements.

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