Press releases 2004
23 August 2004
London Stock Exchange publishes Guide to Corporate Governance
The London Stock Exchange, in association with RSM Robson Rhodes, is pleased to announce the publication of a guide to corporate governance for UK listed companies.
‘Corporate Governance: A Practical Guide’, will be available free of charge to UK companies and other interested parties and is designed to give best practice guidance to boards on how to lead and direct their businesses successfully. It is part of a range of publications and dedicated investor relations solutions that the Exchange is introducing to help companies to comply with the requirements, and maximise the benefits, of their public quotation.
The guide covers a broad spectrum of issues including selecting and developing a high quality board and succession-planning to ensure that a board works effectively as a team. It goes on to explore a range of issues a board must address, including input to strategy, effective risk management, communicating with shareholders and the development of an integrated approach to corporate social responsibility.
Fred Stone, Head of IR Solutions at the London Stock Exchange said:
“Corporate Governance issues are at the forefront of the corporate agenda at the present time and we believe that this guide will provide practical insight into best practice on boardroom effectiveness to help boards achieve their strategic objectives and build enduring value in their businesses.”
The guide advises companies how to take account of the principles and provisions of the new Combined Code on Corporate Governance. Under current listing rules, all UK incorporated companies listed on the London Stock Exchange have to report on how they have applied the principles of the Code. The Code does not, however, specify the form that this part of the disclosure statement should take or the points it should cover.
Anthony Carey, the RSM Robson Rhodes partner responsible for boardroom effectiveness and the author of the guide, said:
"Getting the right board in place and making sure it works effectively is a key business issue. Building world-class companies starts at the top of the organisation, in the boardroom. In implementing the new Combined Code over the next few months, boards have a great opportunity to do so in a way that builds enduring value in the business. They should avoid a tick-box approach which will add cost without maximising the return."
It is intended that companies quoted on AIM should also find the guide a useful resource though the Combined Code does not formally apply to them.
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Notes to Editors
Copies of ‘Corporate Governance: A Practical Guide’ can be obtained by emailing Arabela Militaru: email@example.com
The London Stock Exchange has also published ‘Investor Relations: A Practical Guide’ which is available from the same contact.
About RSM Robson Rhodes
RSM Robson Rhodes is a leading firm of chartered accountants and business advisors. The company offers a range of services to quoted companies and other businesses and to organisations in the public and not for profit sectors. Through its membership of RSM international, the world’s sixth-largest accounting and consulting network the firm’s clients benefit from the skills and experience of more than 20,000 professionals in over 70 countries.
The author of ‘Corporate Governance: A Practical Guide’, Anthony Carey, is the RSM Robson Rhodes partner responsible for board effectiveness issues. He is a member of the Corporate Governance Committee of the Institute of Chartered Accountants in England and Wales.