The Financial Reporting Council (FRC) is consulting on whether the UK Corporate Governance Code requires to be changed in light of the new directors’ remuneration reporting and voting framework.

The consultation document was published on 2 October 2013 and the deadline for responding is 6 December 2013.

In the consultation the FRC is seeking views on whether the Code should be amended to:

  • Extend the clawback provisions.
  • Deter the appointment of non-executive directors (NEDs) who are also executive directors in other companies as members of the remuneration committee.
  • Specify the action companies should take when a significant minority of shareholders votes against the directors’ remuneration report.

The FRC has not yet taken a decision as to whether changes to the Code are required. If any changes are proposed, there will be further consultation during the first quarter of 2014 and the revised Code will apply to financial years beginning on or after 1 October 2014.

Please click here to access the consultation document.