Corporate governance for an AIM company
Corporate governance for an AIM company

The following Corporate practice note provides comprehensive and up to date legal information covering:

  • Corporate governance for an AIM company
  • The corporate governance framework
  • The AIM Rules, the Nomad Rules and LSE guidelines
  • The QCA Code
  • PLSA AIM Guidelines
  • Disclosure Standards
  • Combined roles of chair and Chief Executive
  • CEO becoming chair
  • Founder chair and CEO
  • Appointment of a Senior Independent Director
  • More...

The corporate governance framework

The principal framework for corporate governance in the UK is the UK Corporate Governance Code (UKCG Code). Under the Listing Rules and the Disclosure Guidance and Transparency Rules (DTRs) the UKCG Code applies to both UK and overseas companies with a premium listing of equity shares. It does not apply to a company admitted to trading on AIM (AIM company). For further information on the UKCG Code, see Practice Note: The UK Corporate Governance Code.

The principal rules and guidelines relevant to the corporate governance of an AIM Company include:

  1. the AIM Rules for Companies (AIM Rules), the AIM Rules for Nominated Advisers (Nomad Rules) and guidelines published by the London Stock Exchange (LSE), eg the newsletter Inside AIM (LSE Guidelines)

  2. the Quoted Companies Alliance's Corporate Governance Code (QCA Code)

  3. the Corporate Governance Policy and Voting Guidelines for Smaller Companies (PLSA AIM Guidelines) published by the Pensions and Lifetime Savings Association (PLSA)

  4. the United Kingdom and Ireland Proxy Voting Guidelines (ISS Proxy Voting Guidelines) published by Institutional Shareholder Services (ISS)

  5. the Proxy Paper Guidelines published by Glass Lewis

  6. the European Corporate Governance Guidelines (ECG Guidelines)

The AIM Rules, the Nomad Rules and LSE guidelines

Since September 2018 AIM companies have been required under the AIM Rules to report against a recognised corporate governance code chosen by the board of directors. Companies must explain how

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