Today the Financial Reporting Council (‘FRC’) launched the Wates Principles to improve corporate governance standards among private companies (the ‘Wates Principles’).
The principles are essentially a corporate governance code for private companies. However, they take a very different approach to the FRC Corporate Governance Code which sets out a list of requirements users have to comply with or explain non-compliance. Instead James Wates CBE (Chairman of Wates Group) has developed six core principles and asked companies to explain their application of these in their annual report.
The ‘Wates Principles’ apply to UK Companies that meet one of the following two criteria:
The six principles to explain compliance with in the Director’s report are:
Channel Island entities are currently not required to apply the Wates Principles but if they have UK subsidiary groups or individual entities that meet the two criteria above then they would have to apply the code.
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