FRC Publishes Paper on its 'Comply or Explain' Approach to Corporate Governance
The Financial Reporting Council has taken steps to promote a better understanding of explanations under its 'comply or explain' approach to corporate governance in a recent paper. Key elements of an explanation identified in the discussion are that it should: (i) set out the background; (ii) provide a clear rationale which is specific to the company; (iii) indicate whether the deviation from the Code’s provisions is limited in time; and (iv) state what alternative measures the company is taking to deliver on the principles set out in the Code and mitigate any additional risk.
Originally Published:
15/02/2012