Having identified the need for corporate governance principles applicable to large private companies, the Financial Reporting Council (FRC), on behalf of James Wates, CBE, published a consultation on a set of principles focused on improving transparency and accountability in this area.
‘Known as the Wates Corporate Governance Principles for Large Private Companies, the principles are the result of significant debate and exploration, including a review of similar codes in other countries and consultation with experts and representative bodies. Large private companies will be encouraged to follow six principles to inform and develop their corporate governance practices and adopt them on an ‘apply and explain’ basis.’
The consultation closed on 7 September 2018, and the final version of the Wates Principles for Corporate Governance will be published in December 2018.
NEDonBoard Response to the FRC Consultation upon the proposed ‘Wates Corporate Governance Principles for Large Private Companies’
NEDonBoard is the professional body for NEDs and Board Members in the UK. The board is the highest authority in every institution and we believe exceptional individuals and proper governance ensure organisations progress and benefit both shareholders as well as society.
As the professional body for Non-Executive Directors, our mission is to shape the non-executive and board landscape to improve how businesses and organisations, whether public or private, are run. We inspire and inform non-executive directors and board members in upholding the highest standards of professionalism, governance and ethics. NEDonBoard believes every board member is an agent of progress for the benefit of businesses’ and organisations’ stakeholders and the wider society.
We broadly welcome the FRC consultation on the ‘Wates Corporate Governance Principles for Large Private Companies’. Our only recommendation would be to increase the emphasis placed upon the duties and responsibilities of the Independent and Non-Executive Directors, following their appointment.
As the professional body for these directors, we offer to assist the FRC in the evolution of these standards.
Jean-Philippe Perraud, Director, NEDonBoard
Steven Windmill, NEDonBoard Advisory Board Member