The National Association of Pension Funds (NAPF) has published an update to its Corporate Governance Policy and Voting Guidelines, which are designed to assist investors in their interpretation of the UK Corporate Governance Code when assessing a company’s compliance with it. The revised guidelines introduce a number of small changes which include:
- a greater emphasis on a clear policy for improved board diversity;
- an enhanced audit committee report (including a statement on re-tendering policy); and
- simplification of remuneration policies, with greater focus on directors holding shares for longer.
The NAPF has also published an update to its Corporate Governance Policy and Voting Guidelines for Smaller Companies, designed mainly for AIM companies but also appropriate for smaller quoted companies. Key among these changes are an encouragement to engage more effectively with key shareholders and improved disclosure around board evaluation and the work of the audit committee.
Finally, the NAPF has also published revised Corporate Governance Policy and Voting Guidelines for Investment Companies. These guidelines are based on the UK Corporate Governance Code, while utilising the Association of Investment Companies Code of Governance to set a framework for investment companies which is consistent with the expectations of long term institutional investors.