FTSE 350 still flunks Combined Code test
Two-thirds of top listed companies not complying with Code
A staggering number of companies in the FTSE 350 are still failing to comply
with the Combined Code on corporate governance, a study by
Grant Thornton
has found.
The research by the firm found that 66% of
FTSE 350
companies were not in full compliance with the Combined Code, with only a
third of the businesses able to claim full compliance.
The study also found that only 30 companies provided appropriate disclosures
in accordance with the Combined Code.
Simon
Lowe , head of risk management services at Grant Thornton, said
non-executive directors needed to challenge company boards to ‘clarify why
departure is better for the company’.
‘The Code requires compliance,’ he said. ‘It is the Preamble which introduces
the concept of departure and then only by way of exception and after careful
review supported with considered explanation as to why it is in the company’s
best interest.’
Further reading:
Transparency is key to accounting
Copper giant’s chairman to flout Combined Code
FSA urges Big Four to comply with Code