The Financial Reporting Council (FRC) has published a three-page guide designed to help dispel Corporate Governance and Stewardship misconceptions.
The Guide addresses twelve frequently asked questions, including:
- What is corporate governance? How companies are directed and controlled. It involves legislation, regulation, codes and voluntary action for companies and their shareholders.
- What is meant by stewardship? This can be viewed in two ways - the stewardship of a company by its directors and the stewardship of assets by investors (including company shareholdings) entrusted to them by their clients, such as pension funds.
- Does the UK Corporate Governance code give the FRC powers to enforce against Directors? In a word, No.
The FRC hopes that the guide will provide greater clarity and understanding of Corporate Governance and Stewardship and that "this myth-buster will dispel some of the myths around these two important topics and prove a useful tool for everyone, regardless of their experience in this area."