AMMENDMENTS to the UK Corporate Governance Code are necessary because of changes in the way business is conducted, according to a poll of Accountancy Age readers.
The ICAEW has called for a shake-up of the UK’s corporate governance system and suggested that a code by which companies adhere to governance rules is too narrow and prescriptive to deal effectively with business behaviour.
A poll of 102 Accountancy Age readers found that half believe limited changes to the code should take place, while 31% said the code is “overly focused” on boards and that supplementary codes are needed.
Around a fifth of respondents were more supportive and claimed the UK has one of the best corporate governance systems in the world.
Changes in those who play key roles in capital markets are altering the dynamics of the governance of company behaviour, and are potentially leading to the development of an increasingly complex and inconsistent system of codes, rules and regulations, the institute has previously suggested.
The ICAEW now wants to see what it dubs “an overarching framework for business behaviour” be developed that “sets out broad principles for the purpose of companies today”. These principles can then be supplemented by more detailed codes for particular groups such as the UK Corporate Governance Code and the Stewardship Code.
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