In April 2002 Derek Higgs was appointed by the Secretary of State for Trade and Industry to head the above review. His report, 'Review of the Role and Effectiveness of Non-Executive Directors', was published in January 2003. The Financial Reporting Council intends to issue a revised version of the Combined Code following a short period during which commentators are invited to identify any "fatal flaws" in the proposals. It is expected that the revised Combined Code will come into effect on 1 July 2003.
There are virtually no concessions for smaller listed companies. The approach is one of comply or explain any areas of non-compliance.
This article summarises the main matters and recommendations covered by the report.
- The existing Combined Code does not include a de...