In the first of two articles, Jane Mayfield considers the rationale behind the IoD’s new corporate governance framework
The Institute of Directors (IoD) issued its guidance on corporate governance, Corporate Governance Guidance and Principles for Unlisted Companies in the UK, last month. The guidance is based on the document published by the European Confederation of Directors’ Association in March, Corporate Governance Guidance and Principles for Unlisted Companies in Europe.
Aimed at directors, shareholders and stakeholders of unlisted UK companies the guidance provides the IoD’s rationale and reasons for establishing an effective corporate governance framework in an unlisted company (Part One) and 14 governance principles (Part Two).
The rationale for the guidance
Historically corporate governance codes in the UK have focused on listed companies. With increasing media and public attention in this area over the last few years, and the economic importance of unlisted companies, the IoD has published a set of voluntary corporate governance principles outlining best practice for unlisted companies. The guidance focuses on limited companies that are not listed or quoted on a public
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