On 11 October 2011, the UK Financial Reporting Council announced its decision to amend the UK Corporate Governance Code to further strengthen the principle of boardroom diversity introduced into the Code in 2010.

The changes to the Code will require listed companies to report annually on their boardroom diversity policy, including gender, and on any measurable objectives that the board has set for implementing the policy and the progress made in this regard. Diversity of the board, including gender, will also be listed as one of the factors to be considered when evaluating board effectiveness.

The changes will be incorporated into a revised version of the UK Corporate Governance Code to be published in 2012, with the changes to apply to financial years beginning on or after 1 October 2012. However, the Financial Reporting Council has strongly encouraged all companies to voluntarily adopt the new diversity provisions with immediate effect.

Contributed by Rachel Prendiville.

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