The FRC updated the Combined Code at the end of June 2008 to remove the restriction on an individual chairing more than one FTSE 100 company and to permit the chairman of a listed company below the FTSE 350 to be a member of but not chair of the audit committee provided he or she was considered independent on appointment.

The publication of the revised Combined Code coincided with that of new FSA Part 6 Rules implementing the EC 8th Company Law Directive which imposes new requirements relating to corporate governance statements and audit committees. In particular, listed firms must have an audit committee and include a corporate governance statement in their annual report.

The revised Code and new Rules will apply to accounting periods beginning on or after 29 June 2008.