Non-execs strapped for time
A major change is required in the way non-executives carry out their roles and how management treats them if companies are to comply with the letter, and the spirit, of the combined code on corporate governance.
A survey of non-executives at FTSE and AIM-listed companies by BDO Stoy Hayward found that they may not be getting information that is relevant and timely.
Only 40% received regular updates on key business risks, while just 20% receive monthly information on the status of internal controls.
The code came into force on 1 November and sees a changed role for non-executive directors, who will be expected to have more responsibility, retain greater independence and act as mediator between management and shareholders.
David Anderson, audit partner at BDO, said: ‘It seems that non-executives are fed a lot of information and often on a timely basis, but whether this information is relevant and they are given enough time to absorb it is questionable.’