The Financial Reporting Council (FRC) has published a consultation document seeking views on whether the UK Corporate Governance Code (the Code) should be amended to require annual reports of listed companies to include a description of the board’s policy on gender diversity in the boardroom, measurable objectives that it has set for implementing such policies and its progress on achieving those objectives. Currently, listed companies are only required to consider the benefits of diversity on the board, including gender, when searching for board candidates.

The FRC is also requesting views on whether the Code should include a supporting principle setting out the key issues to be considered when boards carry out their regular effectiveness reviews, and opinions on when the proposed changes to the Code should come into effect. The consultation closes for comments on 29 July 2011 and the decision whether to amend the Code will be announced later this year.

Contributed by Rachel Prendiville, Susanne McMenamin.

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