FRC proposes changes to combined code

The Financial Reporting Council today launched a consultation on changes it
plans to make to the combined code on corporate governance.

The proposals follow a review of the code carried out last year, which found
that the code was bedding down well and, as such, only a small number of changes
have been put forward.

The consultation document suggests relaxing existing provisions to allow the
company chairman to sit on the remuneration committee, and adding new provisions
for companies to include a ‘vote withheld’ box on AGM proxy voting forms and to
publish the results of resolutions voted on a show of hands.

Opinions on the proposed changes to the guidance are sought by 21 April, with
the intention that any amendments come into force for financial years beginning,
on or after 1 November, 2006.

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