Managing corporate governance

Read our latest guidance below.

On 28 March 2020 the Government announced that it would introduce legislation to temporarily suspend the wrongful trading laws.  On 20 May 2020 the Government published the Corporate Insolvency and Governance Bill. 

Read more. 

The Financial Reporting Council (FRC) issued guidance in March 2020 entitled Guidance for companies on Corporate Governance and Reporting, highlighting ways to maintain strong corporate governance, and giving guidance on issues arising when preparing annual reports and other corporate reporting, during the Covid-19 pandemic.

Read more here.

Many companies will have sent out their notices for their 2020 AGM.  What should a board do if they have now decided that, owing to the impact of COVID-19, it is no longer appropriate to recommend a dividend that is due to be voted on at the annual general meeting?

Read more here.

There are two factors which may mean a company wants or needs not to pay a dividend.   The first is because its financial position means its currently unwise or not possible to legally pay out a dividend. Persimmon, Belway and SSP for example have cancelled or deferred their planned dividends due to the effect of the virus on their financial position.  The second is because of the potential for adverse publicity – companies doing well at the moment risk being seen as profiting from the misfortune of others (particularly true of the banks but also supermarkets like Tesco).

Read more here.

Listed companies have strict obligations in relation to AGMs that may be difficult to comply with given the current restrictions on the movement of people.

Read more here.

On 28 March 2020 the Government announced that it would introduce legislation to assist companies with the holding of their shareholder meetings, in particular their AGMs, during the time that social distancing measures were in place.

Read more here.

As companies throughout the UK face the unprecedented challenges caused by the Coronavirus (COVID-19) pandemic, on 20 March it was announced that discretion will be applied to the application of certain of the AIM Rules for Companies and the AIM Rules for Nominated Advisers (AIM Rules). These are temporary measures being implemented to support both AIM companies and nominated advisers.

Read more here.

Now, more than ever, it is critical that companies focus on good governance.  Reasoned, and recorded, decision making is important. 

Read more here.