Mallin: Corporate Governance 2e 
Updates
PowerPoint presentationsMallin: Corporate Governance 2e
Chapter 3
Combined Code (2008)
Page 27 in book
The findings of the Financial Reporting Council (FRC) ‘Review of the Impact of the Combined Code’ were published in December 2007. The overall findings indicated that the Combined Code (2006) had general support and that the FRC would concentrate in improving the practical application of the Combined Code. Details of the Review can be found at: www.frc.org.uk/corporate/2007review.cfm
In June 2008, the FRC published a new edition of the Combined Code which introduced two changes. These changes were (i) to remove the restriction on an individual chairing more than one FTSE 100 company; and (ii) for listed companies outside the FTSE 350, to allow the company chairman to sit on the audit committee where he or she was considered independent on appointment.
The FRC state on their website that “The revised Code took effect at the same time as new FSA Rules implementing EU requirements relating to corporate governance statements and audit committees. The revised Code and new Rules will apply to accounting periods beginning on or after 29 June 2008. In practice this means most companies will begin to apply them in 2009, and will report against them for the first time in 2010.”
Walker Working Group (2007)
Page 28 in book
In November 2007, the Walker Working Group (Private Equity Working Group on Transparency and Disclosure) published ‘Guidelines for Disclosure and Transparency in Private Equity’. These Guidelines are aimed at private equity firms authorised by the Financial Services Authority and by UK portfolio companies owned by private equity funds. The Guidelines are accessible at:
www.ecgi.org/codes/documents/wwg_report_final.pdf
OECD (2008)
Page 31 in book
In June 2008, the Organisation for Economic Co-operation and Development (OECD) published advice on the application of the OECD Principles of Corporate Governance (2004) in an insightful book entitled ‘Using the OECD Principles of Corporate Governance – A Boardroom Perspective’. Business leaders from around the world have contributed providing personal insights into practice in the boardroom. The full report can be accessed at: www.oecd.org/dataoecd/20/60/40823806.pdf
In addition, the OECD has also published two useful documents on the area of private equity and hedge funds. The first document ‘Codes and Industry Standards Covering the Behaviour of Alternative Investors’ (2008) is a list of private sector initiatives aimed at addressing policy issues, whilst the second ‘The Role of Private Equity and Activist Hedge Funds in Corporate Governance – Related Policy Issues’ (2008). Both documents can be accessed via the OECD’s website, at respectively:
www.oecd.org/dataoecd/53/8/40033286.pdf and www.oecd.org/dataoecd/21/13/40037983.pdf
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