Required q’ty of NED in the board of Directors under the UK combined code?????

[huuloc]

from opentuition’s lecture note at page 8 ” . . .not less than one-third of the board comprises NEDs. . .“
from BPP book at page 10 “ . . .NEDs should make up at least half the board. . .“
Which is the appropriate answer?????????????????????????
Thanks.

[**starfish**]

Hi,

when I did P1 it was 1/3rd of the board but now its 1/2 of the board.

The combined code was changed in June this year and is now called “THE UK CORPORATE GOVERNANCE CODE”

From the new code:

B.1.2 Except for smaller companies , at least half the board, excluding the
chairman, should comprise non-executive directors determined by the
board to be independent. A smaller company should have at least two
independent non-executive directors.

This can be found here:

https://www.frc.org.uk/documents/pagemanager/Corporate_Governance/UK%20Corp%20Gov%20Code%20June%202010.pdf

I just presume the OT notes have not been updated for this change yet.

Kind regards

[huuloc]

Thanks starfish. It is useful . . .

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