Corporate governance for private companies
Corporate governance for private companies

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

  • Corporate governance for private companies
  • Background
  • Wates corporate governance principles for large private companies
  • Companies (Miscellaneous Reporting) Regulations 2018

Background

Historically the UK’s corporate governance regime has been focused on publicly listed companies with the UK Corporate Governance Code (UKCG Code) applying to companies with a premium listing on the London Stock Exchange. However, following some high profile corporate governance scandals, there were calls for other companies to be subject to stricter governance standards in recognition of the impact that their activities have on a wide range of stakeholders.

In November 2016 the government published a green paper, which included a number of proposals for corporate governance reform. One area of reform was strengthening the corporate governance framework for large privately-held businesses and in August 2017 the government announced that it would:

  1. invite the Financial Reporting Council (FRC) to work with a variety of partners to develop a voluntary set of corporate governance principles for large private companies under the chairmanship of a business figure with relevant experience

  2. introduce secondary legislation to require companies of a significant size to disclose their corporate governance arrangements in their directors’ report and on their website, including whether they follow any formal code

Wates corporate governance principles for large private companies

In January 2018 it was announced that James Wates CBE had been appointed to chair the Coalition Group, a new industry group, which would be tasked with developing new corporate governance