Summary of the recommendations arising from the Business, Energy and Industrial Strategy (BEIS) Committee corporate governance report.
After taking oral evidence from a cross section of over 170 organisations and individuals who submitted written evidence - and after discussions with a range of chairmen and chief executives of major companies - the Business, Energy and Industrial Strategy (BEIS) Committee inquiry on corporate governance has published its report. The inquiry - focussing on executive pay, directors duties and the composition of boardrooms - follows on from the Committee’s recent inquiries into corporate governance failings and in the wake of commitments from the Prime Minister to overhaul corporate governance.
While recognising the overall strength of the UK corporate governance system, the Committee recommends a series of actions on executive pay, a new and stronger voluntary code of governance for private companies, better reporting by companies on how directors fulfil their duties and responsibilities and a major expansion of the role and powers of the Financial Reporting Council (FRC), with a new rating system for companies to be assessed for their corporate governance performance.
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