The Quoted Companies Alliance (QCA) has published a new version of its corporate governance code (QCA Code), which was last updated in 2018.
The revised QCA Code follows the format of the 2018 Code and is mainly targeted at AIM companies and small and mid-sized quoted companies. The QCA Code sets out ten broad principles, to be applied on a “comply or explain” basis. Each principle is accompanied by guidance on the application of that principle and details of the explanations which should be included either in the annual report and accounts or on the company’s website.
The changes in the revised QCA Code include:
- introducing a specific principle on remuneration, looking at how the company’s remuneration policy aligns with its purpose, strategy and culture;
- expanding the disclosures to be made in the corporate governance statement prepared by the chair of the company, to cover matters such as how the company’s governance arrangements align with, and support, its business purpose; and
- additional guidance to support companies in the application of the principles.
The QCA has included a series of FAQs on the revised QCA Code on its website, where copies of the QCA Code itself can also be purchased (available free to members of the QCA). The revised QCA Code should be applied by companies for accounting periods starting on or after 1 April 2024.