Corporate governance changes will begin next year: FRC

Companies will have to incorporate new corporate governance changes by next
year, according to the accountancy regulator.

The Financial Reporting Council (FRC)said it expects to complete its review
into the corporate governance code, prompted by the financial crisis, within the
next quarter with changes taking effect in 2010.

The council, moments ago, released its quarterly report which outlines its
plans for the next quarter.

Its review of the corporate governance code led some companies, including
retailer Marks & Spencer, to appeal for a watered down version of the
“comply or explain” rule.

The rule pressures companies to report on their adherence or deviation from
corporate governance rules to share holders.

The FRC’s report also highlighted many of the FRC’s progress over the past
year including a consultation on the future of UK GAAP.

Read the full report

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