13 June 2018

Press release

Robust governance key ingredient for business success

The CBI has commented on the publication of a draft voluntary code for privately-owned businesses.

A public consultation has been launched today by the Financial Reporting Council and Department for Business, Energy and Industrial Strategy to gather views from businesses on this new code.

Robust governance key ingredient for business success

The development of a new code was a key proposal in the Government's green paper reforms launched in August 2017. As part of the reform a coalition group, which includes the CBI, and is chaired by business leader James Wates CBE, was invited to come together to develop a voluntary code of corporate governance principles for large privately-owned companies.

This code is intended to provide a suitable framework for large private companies to report against under new mandatory reporting requirements put forward by the government on Monday 11 June.

The FRC’s consultation will run until 7 September.

The final code is expected to be approved and published before the end of 2018 to coincide with the start of the reporting period for the new reporting requirements.

The CBI is encouraging businesses to respond and we will work to ensure their contributions are reflected in the final version of the code.

Matthew Fell, CBI Chief Policy Director, said:

“Robust governance is a key ingredient for business success, regardless of ownership structure. The Wates principles build on the already high standards of governance demonstrated by the vast majority of large privately held companies.

“It’s reassuring to see flexibility in the proposed code, as a one-size-fits-all approach isn’t the right answer. All private companies should aspire to these – or similar - principles to help maintain the UK’s reputation as the number one place to do business.”