Pearse Trust Blog

Following our blog earlier this year on the call for female board representation to be increased, new figures published show that FTSE100 Companies have now increased female representation on their boards.

As governance codes evolved and gave an increased focus on risk management, many organisations instituted risk management procedures. However, these were often divorced from the day to day activity of the business, both in terms of the process and the types of risk identified. A risk review was undertaken, a risk register developed, and key risks identified. These were presented to the audit committee and the board, then put on the shelf until it was required to be looked at the following year but never integrated into the management process.

What Is Internal Control?

Since the introduction of the Cadbury Report in 1992, there has been an increased focus on corporate governance in the boardroom, particularly in those of listed companies.

In the everyday course of business, boards are required to reach collective agreements. Considering the different personalities, opinions, behaviours and the executive and non executive functions of the individuals on a boa rd, reaching collective agreements can sometimes be challenging.  However, it is healthy for individuals on a board to disagree, challenge each other and offer alternative solutions to problems. Employing appropriate etiquette can be fundamental in ensuring that a board of diverse minds speak with one voice.

There has been an increase in female representation on the board of directors of listed companies in the UK over the past two years according to a recent report issued by Lord Davies for the Department for Business, Innovation and Skills. However, the report suggests that there is much still to do in order to achieve a gender balance on the boards of listed companies.

General meetings are meetings of the shareholders of a company.  Decisions of the members at a general meeting are made by a resolution.

The Guidance Report on Board Effectiveness issued by the Financial Reporting Council (FRC) notes that the chairperson of a meeting fulfils an important leadership role, particularly in creating the conditions for overall committee and individual director effectiveness; a good board is created by a good chairperson.

A resolution is a formal way in which a decision is proposed and passed at company meetings.  Essentially, a resolution is written documentation describing an action that has been authorised by either the directors or members of a Company. 

A “Societas Europaea” (an “SE”) is a type of European public limited company (PLC) (limited by shares) having all of the company law advantages of incorporation.