Summary of report
In our 2007 review of the governance practices of the FTSE 350, we now have the benefit of six years of information, highlighting trends and reflecting the impact of new and revised guidance. And for the second year running we have looked closely at the narrative to explore whether companies truly reflect their changing circumstances or merely repeat the same practice, year on year - "boilerplating".
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Key findings
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41% now claim full compliance with the Combined Code
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Of those choosing explanation over compliance, 62% provide more than a basic explanation. However, 46% of those companies made no change to their explanation from one year to the next
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98% disclose that all categories of control and risk management systems have been considered for effectiveness with 22% of companies specifically referring to a review of internal audit effectiveness
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91% of those reviewed provided disclosure on their principal risks, a significant increase from 79% in 2006
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In the area of Corporate Responsibility (CR) reporting, 94% disclose their position on CR with 42% stating that their disclosure was supported by reference to some form of external assurance | |
About the survey
Grant Thornton's Corporate Governance Review 2007 assesses 306 report and accounts of the FTSE 350 against the terms of the Combined Code and associated guidance, including the revised Turnbull Guidance issued in 2006. We exclude investment trusts due to the difference in their nature, structure, management and approach to corporate governance.
