New corporate governance code - the main points

Multiple-choice questions: In order to be awarded CPD units you must answer the following five random questions correctly. If you fail the test, please re-read the article before attempting the questions again

What should remuneration committees consider before setting executive pay?

Whether there has been shareholder revolt over pay in the past

Whether they have support for the level of pay they are likely to set

The workforce pay and related policies

The average executive pay for their sector

What must boards do if 20 percent or more votes are cast against a resolution?

It can be ignored as long as it is recorded in the annual report

The board should explain what actions it proposes to take to consult shareholders and provide an update after six months, with a final summary in the annual report

They must have another vote on the resolution

The board should explain what actions it proposes to take to consult shareholders

What are the Wates principles?

They are six areas of advice for companies including purpose, remuneration and opportunity and risk

They provide a framework to report against on an apply or explain basis

They are six principles that all companies must report against

They provide a framework for reporting

What must be established for the first time?

A mechanism for consulting all stakeholders

A workforce representative on the board

The company purpose

A threshold for executive remuneration

Which statement best describes the aim of the corporate governance code?

Controlling executive pay

Improving governance to promote the long-term success and attractiveness of capital markets

Improving governance to promote the long-term success of companies

Improving corporate governance

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New corporate governance code - the main points

What should remuneration committees consider before setting executive pay?

What must boards do if 20 percent or more votes are cast against a resolution?

What are the Wates principles?

What must be established for the first time?

Which statement best describes the aim of the corporate governance code?

What is the purpose of Provision 19?

Which of the following is not a mechanism for engaging the workforce under Provision 5?

What must remuneration committees do if the calculations lead to a potentially unjustified level of pay?

How many principles and provisions does the revised code have?

What key change has been made to reflect a changing social and economic climate?

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