On 11 October 2007, the Financial Reporting Council (FRC) announced the findings of its latest review of the Combined Code on Corporate Governance (Combined Code). The review focussed on the impact and effectiveness of the Combined Code. The FRC concluded that the Combined Code was working reasonably well and that there is currently no need for major changes, but that improvement in the way the Combined Code was being applied could be achieved. Two amendments to the Combined Code's existing provisions have been proposed:
- to remove the restriction on an individual chairing more than one FTSE 100 company, and
- to allow the chairman of a smaller listed company to be a member of the audit committee where he or she was considered independent on appointment.
Consultation on the proposed amendments is due to begin in November 2007. If the suggested changes are accepted, it is anticipated that a revised Code will come into force in June 2008, at the same time as new FSA Rules made under Part 6 of the Financial Services and Markets Act (which include the Listing Rules) implementing new EU requirements on corporate governance.