Mazars supports corporate governance reforms

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Mazars has recently responded to three consultations that seek to make revisions to corporate governance in the UK. Two of these were submitted to the Financial Reporting Council (FRC), one in response to proposed changes to the UK Governance Council and the other on the proposed new Stewardship Code for Institutional Investors. The third response was submitted to the Institute of Chartered Secretaries and Administration in relation to improving board effectiveness.

In its response to the FRC on proposed changes to the UK corporate governance code, in addition to indicating firm support for the proposed changes, Mazars addressed the question of the re-election of chairman and directors. The firm does not support the annual election of all board members but concluded that, on balance, it was broadly supportive of electing the chairman on an annual basis.

Mazars supports the FRC's proposed new Stewardship Code but has suggested it could be strengthened by emphasising the stewardship responsibilities of institutional investors and their need to ensure sufficient resources are allocated to discharge them effectively. It highlighted that particular care should be taken to make sure that there is an appropriate level of engagement by institutional investors with the boards of smaller quoted companies in which they have a reasonable shareholding.

On the ICSA non-prescriptive guidance to supplement the corporate governance code, the firm suggested a number of additional areas for consideration.

Full copies of Mazars' submissions can be accessed by clicking on the links below.