The Financial Reporting Council (FRC) has urged companies to respond ‘rapidly’ to amendments in the UK Corporate Governance Code concerning boardroom diversity.
The changes to the code will help strengthen the principle on boardroom diversity, which was first introduced in June 2010.
The FRC had issued a consultation document in May earlier this year seeking views on whether the code should be revised as recommended by Lord Davies of Abersoch in his review of the gender diversity of the boards of UK-listed companies (published in February 2011).
According to the FRC, the vast majority of respondents supported the amendments proposed, which the FRC is now in the process of implementing.
The feedback statement on gender diversity on boards, concluded that:
“In accordance with the views of the vast majority of respondents, the FRC intends to implement the two amendments to the Code on which it consulted. Minor changes to the wording will be made to make it consistent with the existing wording on diversity in the Code”
The amendments will require listed companies to report annually on:
- boardroom diversity policy, including gender
- any measurable objectives that the board has set for implementing the policy
- progress it had made in achieving the objectives