The Financial Reporting Council (FRC) has published a feedback statement on its consultation paper, Gender Diversity on Boards, and has announced that it will amend the UK Corporate Governance Code to strengthen the principle on boardroom diversity which was first introduced into the Code in June 2010.
These amendments will require listed companies to report annually on their boardroom diversity policy, including gender, and on any measurable objectives that the board has set for implementing the policy and the progress made in achieving those objectives. The FRC will also update the Code to require companies to consider of the diversity of the board, including gender, when evaluating board effectiveness.
These changes will apply to financial years beginning on or after 1 October 2012, although the FRC is strongly encouraging all companies voluntarily to apply and report on them with immediate effect.
For a copy of the FRC’s feedback statement, click here.