The changes are targeted rather than sweeping. The headline shift is in Section 4: boards of premium-listed companies must now include a formal declaration of the effectiveness of their material internal controls in the annual report. This goes beyond the previous requirement to review and report on controls. Boards must define what constitutes a material control for their business, evidence how they have monitored it, and sign off on effectiveness. A new Principle C also reframes governance reporting itself, requiring it to focus on board decisions and their outcomes in the context of company strategy, rather than process description alone.
What the updated UK Corporate Governance Code means for Boards
The FRC's UK Corporate Governance Code was revised in 2024 and has applied since January 2025. Its most significant provision, Provision 29, came into force this year. Boards need to understand what has actually changed.
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