Boards and committees

The UK Corporate Governance Code (UKCG Code) of the Financial Reporting Council (FRC) applies to companies with a listing of equity shares in the equity shares (commercial companies) category or the closed-ended investment funds category, regardless of whether they are incorporated in the UK or elsewhere, and sets out standards of good practice, including in relation to leadership and effectiveness of the board of directors.

Section 1 of the UKCG Code deals with the role of the board in promoting the long-term sustainable success of the company and establishing the company’s purpose, values and strategy. Section 2 deals with the division of responsibilities of the board, including the different roles of the chairman, the senior independent director and non-executive directors. Section 3 deals with the composition of the board and its committees, succession planning and board evaluations. For commentary, guidance, analysis and materials on these sections, see Resource Notes:

1. •

   UK Corporate Governance Code—Section 1—Leadership and purpose

2. •

   UK Corporate Governance Code—Section 2—Division of responsibilities

3. •

   UK Corporate Governance Code—Section 3—Composition, succession and evaluation

It may also be useful to refer to Practice Note: Boards and committees—fundamentals.