Large privately owned companies are set for a governance
shakeup as part of set of
reforms tabled by the UK government last week. These tackle
a number of areas including executive pay, employee
representation and governance at large unlisted companies,
though have been accused of being watered down.
The government will be working with the Financial Reporting
Council, which drafted the UK’s existing corporate
governance code, to develop voluntary principles for these
"Unlisted companies have so far not been encompassed by
governance best practices, so that could be a really
significant change," said Roger Barker, head of corporate
governance at the Institute of Directors. "The government is
clearly saying that they should still be required to benchmark
relative to some sort of principles."
The announcement follows a green paper released in November
2016, which refers to troubled high street store BHS by name,
noting that 'employees, customers, supply...