The corporate governance regime

Corporate governance is the system of rules, practices and processes that are put in place to manage and control a company. A business that has effective corporate governance policies in place is likely to build an environment of trust, transparency and accountability and contribute to a more inclusive society by ensuring the interests of all its stakeholders are balanced. Good corporate governance is also believed to contribute to successful company performance and help businesses foster growth, long-term investments, financial stability and business integrity.

For a consideration of the approach to corporate governance taken in the UK, see Practice Note: The corporate governance regime—fundamentals.

Corporate governance codes in the UK

The corporate governance environment in the UK has been evolving since the late 1980s.

The UK’s first corporate governance code had its beginnings in a report issued by the Committee on the Financial Aspects of Corporate Governance. The committee, chaired by Sir Adrian Cadbury, was established in May 1991 to review the aspects of corporate governance relating to financial reporting and accountability. Its final report, The Financial Aspects of Corporate Governance (usually known as the Cadbury Report),

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

TAKE A FREE TRIAL

Latest Corporate News

FTSE Russell announces changes to FTSE UK Index Series methodology

FTSE Russell has announced changes to the FTSE UK Index Series methodology, effective from the September 2025 index review. These changes include modifications to the Sterling Denominated Price Requirement and Fast Entry Thresholds. Securities that trade in Euros or US dollars (or other non-Sterling currencies) will be considered for potential inclusion in the Index Series. In addition, FTSE Russell will lower the Fast Entry Thresholds for the Index Series, allowing a company listing on the London Stock Exchange that ranks 225th or above based on its closing price on the first day of dealing and has an investable market capitalisation of £1bn or more, if it is otherwise eligible, to be fast tracked into the FTSE 100 or 250 after the close on its fifth day of trading. The lowest ranked constituent will be removed from the applicable index, and associated membership changes will be implemented.

BVCA updates model documents for early stage investments

The British Private Equity and Venture Capital Association (BVCA) has updated its model documents for early stage venture capital investments, replacing the February 2023 versions.

Companies House publishes guidance on protecting personal information on Register of Overseas Entities

Companies House has published detailed guidance on protecting personal information on the Register of Overseas Entities (ROE) for beneficial owners, managing officers, and trust members of overseas entities who are at serious risk of harm or intimidation if their details are publicly accessible. The guidance outlines the process for these individuals to apply to protect their information from public disclosure on ROE. Trust members who meet the criteria for protection must apply before 31 August 2025, after which third parties will be able to request access to trust details.

Corporate weekly highlights—27 February 2025

This week's edition of Corporate weekly highlights includes: a Companies House announcement of a delay in the implementation of the Authorised Corporate Service Providers (ACSPs) registration service, the FRC’s publication of updated guidance on going concern reporting requirements, the publication of the FTSE Women Leaders 2025 report on the increased number of women appointed to listed company boards and both the PLSA and PPF’s submitted responses to the FRC’s UK Stewardship Code consultation.