Large, private businesses are set to face more regulation and scrutiny, as the government has confirmed plans to develop a corporate governance code for unlisted companies.
The code, which will be developed by the Financial Reporting Council (FRC), is part of a wider series of measures to establish new boardroom standards that are expected to be implemented next year.
The plans were initially set out in a green paper last year, which indicated that companies with more than 1,000 employees would be able to voluntarily opt into the guidelines, reports The Times. Now the government has announced it is pushing ahead with the code.
Stephen Haddrill, chief executive of the FRC, said: “Large private companies are integral to the UK economy as significant employers and supporters of communities and families. It is right we develop a set of corporate governance principles to enhance confidence that they act in the public interest.”
The code was initiated in the wake of the BHS scandal, and will be the first set of corporate governance guidelines for private companies. The existing guidelines for listed companies are also set to be overhauled, with a formal consultation starting later this year.