For use by publicly-traded companies and revised to reflect recent changes to the UK Corporate Governance Code and related guidance
The Institute of Chartered Secretaries and Administrators has produced an updated version of its sample non-executive director’s appointment letter. Reflecting the latest (May 2010) edition of the UK Corporate Governance Code and associated guidance, including the FRC’s Guidance on Board Effectiveness (see this post), the accompanying ICSA press release explains that:
“Various sections…have been expanded, notably the areas relating to appointment, time commitment and the duties. There is a new clause on training, and a number of new standard clauses, commonly found in this type of appointment letter.”
The letter can be accessed on the ICSA website.
ICSA’s introduction to the letter states that it “is not intended to be a prescriptive template. It reflects the various practices of some of the larger companies and aims to provide an initial checklist of the elements a company may wish cover in its appointment letters. The text and content should be adopted to suit the company’s own circumstances.”
The letter is designed for use by listed companies that are required to “comply or explain” with the UK Corporate Governance Code by virtue of the Listing Rules, but will also be useful for AIM companies and for larger private companies.
Friendly Corporate PSL
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