More responsible boards. After several months of revision – the financial crisis proved how necessary it was – the corporate governance code, which was first established in 1992, was amended to make boards more efficient and more responsible vis-à-vis the shareholders. The code will follow the “comply or explain” practice: the representatives will either have to follow advice, or explain how they do things differently to promote good governance. Enforced on June 29, 2010, it provides that the board has the obligations to determine the nature and extent of the significant risks it wants to take or even that performance-based remuneration has to be in line with the company’s long-term interests and risk policies. It seeks to increase responsibility for managers by providing that those who manage the FTSE 350 have to be elected every year.
e: the representatives will either have to follow advice, or explain how they do things differently to promote good governance.
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