On 11 October 2011, the Financial Reporting Council (‘FRC’) announced that it will amend the UK Corporate Governance Code (‘the Code’) to require listed companies to report annually on:
- the company’s boardroom diversity policy, including gender diversity; and
- any measurable objectives that the board has set for implementing this policy and the progress made in achieving such objectives.
The FRC will also update the Code to specify the question of the diversity of the board, including gender diversity, as one of the matters to be taken into account when evaluating the effectiveness of the board.
The latest amendments to the Code come in the wake of the Davies Report, ‘Women on Boards’1 and will come into force for financial years beginning on or after 1 October 2012, although the FRC is urging compliance on a voluntary basis with immediate effect .
FRC Feedback Statement: Gender Diversity on Boards available at: http://www.frc.org.uk/images/uploaded/documents/Feedback%20Statement%20on%20Boardroom%20Diversity%20October%202011.pdf