Source · Select Committees · Public Administration and Constitutional Affairs Committee
Recommendation 2
2
Rejected
Paragraph: 19
Update or replace the Corporate Governance Code to define non-executive directors' comprehensive roles.
Recommendation
The Corporate Governance Code is not fit-for-purpose as the main guidance document for NEDs, given it does not encompass all of their work in Government. It should be updated or replaced by the end of the calendar year to set out the key roles and tasks that a Government NED should undertake within the department, as well as any limitations to that. The new document should cover typical activities of NEDs both on and outside the departmental board setting.
Government Response Summary
The government rejects the recommendation that the Corporate Governance Code is not fit-for-purpose, stating it will only consider updates while prioritizing departmental flexibility rather than a prescriptive new document.
Paragraph Reference:
19
Government Response
Rejected
HM Government
Rejected
The Government respectfully does not agree. The Government will consider whether, taking into account the recommendations of the Committee, Lord Maude’s report and the Government’s response to the CSPL Standards Matter 2 report, the Code would benefit from some updates. However, we remain keen to ensure departments retain flexibility in how they use NEBMs to address their own priorities and needs. It is appropriate that Boards have flexibility to act differently and individual Board Chairs may wish to use the varied and diverse NEBM talents in different ways to maximise their value to the department.