Protecting yourself as a NED: understanding the implications of the UK Corporate Governance Code for NEDs as individual professionals

January 9, 2020 Leave a commentNon-Executive DirectorBy Rachel / Suzanne

2018 saw the publication of an updated UK Corporate Governance Code, the introduction of new corporate governance reporting requirements in The Companies (Miscellaneous Reporting) Regulations 2018 as well as the establishment of the Wates Corporate Governance Principles for Large Private Companies. The regulations and corporate governance provisions apply in relation to the financial years of companies beginning on or after 1st January 2019.

Related posts: Changes to corporate governance in the UK

In Q4 2019, NEDonBoard organised round-tables discussions with experienced NEDs and chairs from a variety of backgrounds and industries, with the objective to discuss the aforementioned changes affecting UK boardrooms and the resulting consequences for NEDs as individual professionals.

The discussions have highlighted that:

There remains a lack of awareness of the UK Code in FTSE boardrooms, as many senior and experienced NEDs have not read the 2018 Code or do not fully understand its implications.
This comes at a time of increased vulnerability of NEDs as individual professionals. Indeed, claims may be brought up against them by the Select Committee, regulators or shareholders, notably with the emergence of activism in the UK.
There is also increased pressure from the public for NEDs to meet higher standards.
The FRC does not promote the day-to-day implementation of the provisions of the UK Code, but NEDonBoard, the UK professional body for non-executive directors and board members does.

NEDonBoard is pleased to organise a panel discussion on 28 January 2020 to promote and facilitate the understanding of the UK Corporate Governance Code and its implications to the community of NEDonBoard non-executive directors and board members. The panel discussion will provide attendees practical recommendations on how to interpret the Code, protect yourself as a NED and implement a solid decision-making process at board level.

Why you should attend the event

Understand the context in which recent corporate governance changes have been adopted
Increase your knowledge of the UK Corporate Governance Code
Understand the implications of the Code
Uncover board best practices to protect yourself as a NED and board member

Who should attend the event?

The event is designed to meet the ongoing professional development of non-executive directors and board members in companies that have adopted the UK Corporate Governance Code as their corporate governance arrangements.
NEDs and board members in companies that intend to follow the Code or have adopted another corporate governance code as their governance arrangements would also benefit from the event, as the UK Corporate Governance Code remains the gold standard.
NEDonBoard also welcomes boardroom practitioners and those aspiring to become a NED or board member, already operating at or near board level.

We remind our readers that attending NEDonBoard panel events and investing in your professional development as a NED and board member demonstrate how you discharge your duty under section 172.

Attendees are encouraged to read the UK Corporate Governance in advance of the event to gain most of the panel discussion (available on the FRC website).

Any questions should be sent to [email protected].