Partner Article

IoD welcomes changes to boardroom

The Institute of Directors has welcomed the proposed changes to codes relating to boardroom diversity policies.

The new disclosure requirements of the UK Corporate Governance Code will relate to the need for diversity in general, rather than just the lack of women in boardrooms.

Dr Roger Barker, Head of Corporate Governance at the Institute of Directors commented: “This treatment of diversity is a sensible approach from the Financial Reporting Council.

“The FRC has also decided, very wisely, to avoid prescribing what a company’s diversity policy should look like.”

However, he went on to disagree with the plans to change recommendations on board evaluations, because diversity should already be considered part of the process.

He added: “In the IoD’s view, this addition is not necessary as board diversity must already be considered as part of the work of the nomination committee.

“The effect of the change is to increase the prescriptiveness of tie Code regarding the methodology of board evaluations, which would have been best avoided by the FRC.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .