On 3 March 2011, the UK's Financial Reporting Council published new guidance on board leadership and effectiveness. The guidance, which is non-binding, is intended to assist companies which are subject to the UK Corporate Governance Code in applying the Code's principles in this area. It replaces the Higgs Guidance which covered similar ground. The guidance deals with the role of chairman, the senior independent director, the roles of executive and non-executive directors, decision-making at board level, the company secretary, board composition and other related areas.
FRC Chairman Baroness Hogg said of the new guidance notes:
"This is a response to requests for continuing guidance on some of the issues raised by the UK Corporate Governance Code, and I am very grateful to the Institute of Chartered Secretaries and Administrators, and the steering group it established under the chairmanship of Sir John Egan, for consulting on and developing these thoughts on the FRC's behalf. While it is not prescriptive, this guidance can, I hope, help boards to carry out their role effectively."
For a link to the guidance, please click here.