Source · Select Committees · Public Administration and Constitutional Affairs Committee

Recommendation 19

19 Rejected Paragraph: 69

Mandate the Government Lead Non-Executive to monitor compliance with the Corporate Governance Code

Recommendation
The Committee is concerned by the variability in board performance, the differing commitment of Secretaries of State in engaging with departmental boards, and examples of non-compliance with the Corporate Governance Code which are not being reported in departments’ annual reports as expected. We believe that the Government Lead Non-Executive should act as a de facto regulator of the NED system, and monitor compliance with the Code.
Government Response Summary
The government rejected the recommendation, stating that compliance monitoring lies with Principal Accounting Officers and it would be unhelpful for the Government Lead Non-Executive to intervene in a monitoring or enforcement role.
Paragraph Reference: 69
Government Response Rejected
HM Government Rejected
The responsibility for monitoring compliance lies with Principal Accounting Officers supported by Audit and Risk Assurance Committees. We believe that it would be unhelpful for the Government Lead Non-Executive to intervene in the process in a monitoring or enforcement role. Instead, the Government Lead Non-Executive should oversee the system and report themes in his or her annual report.