Responding to the FRC’s UK Corporate Governance Code changes, Dr Roger Barker, Head of Corporate Governance at the Institute of Directors, said:
“The IoD welcomes the publication of the revised UK Corporate Governance Code, particularly its engagement with a wider range of stakeholders including the workforce, as well as encouragement of more long-term oriented business behaviour and recognition of the board’s role in overseeing a company’s purpose and culture.
“While these are all enhancements to this key document, we are however disappointed that a crucial recommendation for directors to undertake continued professional development has been demoted to the Guidance. As we highlighted during the consultation period, the role of the modern director is increasingly complex and specialised, and there is an ongoing need for these individuals to take stock of their competencies. By removing reference to the professional development of directors from the Code and only mentioning it peripherally in the Guidance, the FRC risks indicating to directors that it is not important.
“Recent corporate failures have shown the danger of company boards not being aware of their responsibilities and duties, and as the primary governance document for many UK companies, the Code should be playing a key role in raising the standards of UK directors.“