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Changes to the AIM Rules
In March 2018, AIM Rules changed to require all AIM companies to:
- state on their website which recognised corporate governance code they have adopted
- “comply” with the recognised corporate governance code they choose to apply and “explain” any meaningful instances of non-compliance.
AIM companies were required to comply by 28 September 2018.
Recognised corporate governance codes
There are two principal corporate governance codes adopted by AIM companies: the FRC’s UK Corporate Governance Code and the Quoted Companies Alliance (QCA) Corporate Governance Code, both of which are ‘recognised’ corporate governance codes.
The majority of small to mid-size companies find the UK Corporate Governance Code unsuitable for their development stage and size. The QCA Code may be the answer to their needs, providing an appropriate corporate governance framework for smaller quoted companies.
New QCA Code – answer to AIM Rule Changes
Following the change to the AIM Rules, the QCA has published a revised corporate governance code (Revised Code) which contains:
- ten (formerly twelve) principles;
- the inclusion of suggested disclosure requirements alongside the ten principles; and
- a requirement for the Chairman to produce a statement in the Annual Report which provides, at a high level, how the Revised Code is applied by the company.
We have helped a number of AIM quoted clients to adopt the Revised Code and undertake an audit of their existing corporate governance practice. Jordans was part of the working group that produced the Revised Code, so we are able to provide valuable insight into the rationale behind the drafting.
How we can help
If you haven't yet adopted a recognised corporate governance code or added a corporate governance statement to your website, we are here to help. Please contact Daniel Murray or Carmen Stevens for more information.
For those AIM companies that have already complied with AIM Rule 26, attention now turns to Annual Report disclosures. Should you require any assistance, our experienced team of corporate governance consultants is on hand to provide the support you need.