Beer Info FAQ

Is corporate governance a legal requirement?

Is corporate governance a legal requirement?

The UK Corporate Governance Code is not law, therefore compliance is not compulsory. The FRC asks companies to 'comply or explain' – either follow the Code or explain why they do not. The Code speaks a lot of sense on how a company should be directed.

What is the importance of code of corporate governance?

Employing good corporate governance helps the company regulate risk and reduce the opportunity for corruption. Often, scandals and fraud within a company become more likely where directors and senior management do not have to comply with a formal governance code.