Combined Code Review Findings

01.01.07

Combined Code Review Findings

Earlier this year, the Financial Reporting Council (FRC) reviewed the impact and effectiveness of the 2006 version of the Combined Code. The FRC concluded that it was working reasonably well and did not currently require major changes. However, two amendments are proposed:

  • to remove the restriction on an individual chairing more than one FTSE100 company
  • 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.

The FRC is consulting on the proposed amendments. If they are agreed, a revised Code will come into effect in June 2008.