FRC announces proposals to the Combined Code

News Article - 21 December 2007
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Possible changes by the Financial Reporting Council (FRC) to the Combined Code could mean an individual can chair more than one FTSE 100 company.

Further proposals would allow the chairs of FTSE 350 companies to become members of the audit committee, although they would not be allowed to chair it. This would be subject to the individual being deemed independent on appointment.

Both changes are a result of a review of the impact and implementation of the Combined Code, which professionals were found to be frustrated with its day-to-day operation.

However, the code was found to be working "fairly well", according to the FRC, and is believed to have enhanced the standard of governance in UK business.

A consultation on the two possible changes will end on March 14th and any final amendments are expected to be introduced after June 29th.

The FRC states that the Combined Code "sets out standards of good practice in relation to issues such as board composition and development, remuneration, accountability and audit and relations with shareholders".

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