Global transparency body in sync with Higgs
Global non-government corruption watchdog, Transparency International, has called for corporate governance reforms, some of which closely mirror those set out in last week's Higgs' report.
Link: Higgs’ special report
In its Global Corruption Report 2003 the body, said the majority of board positions should be held by independent directors, which should also chair audit and remuneration committees.
The Higgs’ report said at least half of UK boardrooms should be independent of management.
TI executive director Jermyn Brooks said all elements of directors’ remuneration should be fully disclosed in the financial statements and be subject to separate voting at each annual general meeting.
Furthermore, the audit committee, he said, should approve any non-audit work awarded to auditors.
‘If auditors wish to avoid regular rotation of firms performing audits, as a minimum they should develop standards for independent reviews of assignments following internal rotation and should document the results,’ he said.
He said to date no country had specified such requirements.