CBI has welcomed changes to the Higgs proposals on corporate governance as
"a victory for common sense".
chief Digby Jones praised the Financial Reporting Council (FRC) for addressing
all the major concerns of business and achieving a new consensus on changes to
the boardroom rulebook in its new code published yesterday.
Combined Code on Corporate Governance was drawn up to improve boardroom
performance and accountability. Jones said the new code would strengthen boards
and bolster the reputation of business.
CBI had voiced concerns that changes proposed by Derek Higgs in his
government-commissioned report on non executive directors, published earlier
this year, would be overly prescriptive, undermine chairmen and threaten
said: "This is a victory for common sense. The FRC has delivered a code
that will encourage better corporate governance but not have damaging
amendments make clear that ‘comply or explain’ should not mean ‘comply or else’.
They ensure that the role of the chairman will not be undermined and
debilitating boardroom divisions will not be created.