FRC moves to bolster audit committees
Combined code changes open door to chairmen
Chairman of listed companies outside the FTSE350 will be permitted to be
members of an audit committee providing they remain independent, according to
changes announced to the Combined Code on corporate governance.
The changes revealed today will also remove the restriction on allowing
someone to chair more than one FTSE100 company.
Sir Christopher Hogg, chairman of the Financial Reporting Council, the body
charged with reviewing the code, said the changes were part of a ‘continuing
evolution’ of the code.
The review of the code found that many respondents to the consultation found
enormous difficulty recruiting people to sit on audit committees because of the
increased workload and responsibilities.
A survey of FTSE350 companies found that 30% encountered problems in
recruiting the right people.
for the report on the combined code
for responses to the consultation