Governance Briefing — January 22, 2024
The UK Financial Reporting Council published the 2024 Corporate Governance Code, sharpening internal controls reporting, board evaluation, and audit committee expectations for premium-listed companies.
Executive briefing: On 22 January 2024 the Financial Reporting Council (FRC) issued the 2024 edition of the UK Corporate Governance Code. The revision emphasises board accountability for internal control effectiveness, improves transparency on malus and clawback, and enhances audit committee reporting.
Key governance signals
- Internal controls declaration. Boards must include a declaration on the effectiveness of material internal controls in annual reports for accounting periods beginning on or after 1 January 2025.
- Audit committee reporting. Enhanced disclosures cover significant issues, assurance activity, and auditor appointments.
- Remuneration accountability. Companies should describe malus and clawback arrangements, trigger events, and enforcement outcomes.
Action checklist
- Conduct a controls effectiveness assessment and roadmap to support the forthcoming declaration requirement.
- Update audit committee reporting templates to capture expanded disclosure topics and evidence challenge of management.
- Review remuneration policies and documentation of malus and clawback decisions for transparent reporting.
Sources
Zeph Tech supports UK issuers with internal control attestation programmes, audit committee reporting, and remuneration governance aligned to the 2024 Code.