On 1 May 2013, the Quoted Companies Alliance ("the QCA")2 published its revised Corporate Governance Code for Small and Mid-Size Quoted Companies ("the QCA Code") to replace the 2010 edition. The QCA Code is widely accepted as an industry standard for growing companies not governed by the UK Corporate Governance Code including standard listed and AIM companies. It applies key elements of the UK Corporate Governance Code, policy initiatives and other relevant guidance to small and mid-size quoted companies, containing twelve principles of corporate governance and a set of minimum disclosures.
Key changes made by the 2013 edition of the QCA Code include the following:
- Re-ordering the twelve principles to put greater emphasis on the delivery of growth in long-term shareholder value.
- Stressing the key role of the chairman in ensuring good governance.
- Including greater detail on the characteristics of an effective board.
- Focusing on the benefits of good governance (in helping, for example, to build trust between the company, its shareholders and potential shareholders).
- Focusing on the prime importance of companies delivering good quality explanations of their approach, actions and behaviour.
- Further entrenching the principle of constructive engagement between companies and shareholders.
QCA Corporate Governance Code for Small and Mid-Size Quoted Companies 2013 available to buy from the QCA at: http://www.theqca.com/