The Quoted Companies Alliance revises its Corporate Governance Code

In our April 2018 Business Edge we explained that the changes to the AIM Rules mean that, from 28 September 2018, all AIM-listed companies must adopt a recognised code of corporate governance and include on their websites details of how they have complied with it, together with reasons for any non-compliance. We also highlighted that both the Quoted Companies Alliance (QCA) and the Financial Reporting Council (FRC) were in the process of revising their respective corporate governance codes. On 25 April, the QCA released its revised and fully updated Corporate Governance Code 2018.

Many small and mid-size listed companies will find that the FRC's UK Corporate Governance Code is unsuitable for their size and stage of development. These companies are more likely to select the QCA Code, which serves as a practical outcome-oriented approach to corporate governance and is tailored to their typical circumstances. It will generally be of interest to companies that are listed on AIM and other similar markets; companies listed on the Main Market of the London Stock Exchange continue to be required to follow the FRC’s Code under the Listing Rules.

The revised version of the QCA Corporate Governance Code includes ten corporate governance principles that companies should follow, together with step-by-step guidance on how to effectively apply these principles. It also includes a set of prescribed disclosures, and recommendations on whether these are best presented in the annual report or on the company’s website.

The QCA has also previously published guidance on remuneration committees and audit committees which supports the application of its Corporate Governance Code. The QCA Code, its associated guidance and other materials may be downloaded for free by members of the QCA and are available for sale to non-members.

Read the QCA Corporate Governance Code (2018)

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