The UK's Corporate Governance journey

The FRC published the latest UK Corporate Governance Code. The main change in this code is a requirement under Provision 29 for a declaration of effectiveness by the board in relation to material controls coming into force on 1 January 2026.

In February, the FRC announced a fundamental review of the UK Stewardship Code and in August they published some interim changes to reporting for Stewardship Code signatories. A consultation on a 'significant update' to the Code was launched in November.

The FRC announced a consultation on proposed changes to the the UK Corporate Governance Code.

The Government published the white paper Restoring Trust in Audit and Corporate Governance as a response to the collapse of Carillion PLC in 2018.

The FRC published the UK Stewardship Code 2020 which set far higher standards for asset owners and managers.  Asset classes beyond listed equity and service providers were brought into scope.

Following a major review, the FRC published a revised UK Corporate Governance Code. Changes included far greater emphasis on stakeholders, eg, employees. 

The FRC published the Wates Corporate Governance Principles for Large Private Companies.

ICAEW’s Connect and Reflect thought leadership series was launched. It encouraged companies to move away from defensive, old-style news management and corporate positioning. Companies will succeed if they apply the Connect and Reflect approach to the most persistent challenges in corporate governance.

Following concerns about poor corporate governance at BHS and Sports Direct, the government published a Green Paper concerning corporate governance reform.

ICAEW’s Dialogue in Corporate Governance thought leadership series answered five vital questions:

• What should companies be responsible for?
• What are the overarching principles of corporate governance?
• When is comply or explain the right approach?
• How diverse should boards be?
• Who should be covered by codes?

The FRC published a collection of essays to mark the 20th anniversary of the Corporate Governance Code, which had introduced the UK’s "comply or explain" approach to best practice in the organisation of the corporate boardroom and in relations with shareholders.

The Combined Code was revised and renamed the UK Corporate Governance Code.

The first version of the UK Stewardship Code was published.  It aimed to enhance the quality of engagement between institutional investors and companies, so that institutional investors contribute positively to the governance of the companies in which they invest.

The Institute of Directors published a corporate governance code and guidance for unlisted companies.

ICAEW began the "Beyond the myth of Anglo-American corporate governance" initiative. It aimed to broaden debate on the differences between US and UK corporate governance systems and to clarify pressures and opportunities in increasingly international capital markets.

The publication of the Myners Report included a number of recommendations on how the relationship between institutional investors and company management should be conducted.

The Turnbull Report set out best practice on internal control for UK listed companies.

The Hampel Committee reviewed the recommendations made by the Cadbury and Greenbury Committees. Hampel recommended a single code of corporate governance, and this led to the Combined Code which applied to all UK listed companies.

The Greenbury Report issued a Code of Best Practice on establishing remuneration committees.

The Report of the Committee on the Financial Aspects of Corporate Governance (the Cadbury Report) was published. It included a Code of Best Practice (the Cadbury Code). A requirement was added to the London Stock Exchange Listing Rules which required companies to "comply or explain".