Principles of the UK Corporate Governance Code

Question 1

Board Leadership and Company Purpose - UK Corporate Governance Code: Section 1

Answer 1

• workforce policies and practices are consistent with the company’s values
• led by an effective and entrepreneurial board, whose role is to promote the long-term sustainable success of the company

Question 2

Division of Responsibilities - UK Corporate Governance Code: Section 2

Answer 2

• The chair leads the board
• chair facilitates constructive board relations and the effective contribution of all non-executive directors, and ensures that directors receive accurate, timely and clear information.
• appropriate combination of executive and non-executive directors

Question 3

Composition, Succession and Evaluation - UK Corporate Governance Code: Section 3

Answer 3

• Appointments to the board should be subject to a formal, rigorous and transparent procedure
• The board and its committees should have a combination of skills, experience and knowledge with annual evaluations.

Question 4

Audit, Risk and Internal Control - UK Corporate Governance Code: Section 4

Answer 4

• The board should establish procedures to manage risk, oversee the internal control framework
• The board should present a fair, balanced and understandable assessment of the company’s position and prospects.

Question 5

Remuneration - UK Corporate Governance Code: Section 5

Answer 5

• Executive remuneration should be aligned to company purpose and values
• No director should be involved in deciding their own remuneration outcome.