The Combined Code on Corporate Governance  * is published by the Financial Reporting Council and applies to all UK incorporated companies (and some foreign companies) listed on the UK Stock Exchange.

The most recent (2008) version of the Code combines the Cadbury and Greenbury reports on corporate governance, the Turnbull Report on Internal Control (revised and republished as the Turnbull Guidance in 2005), the Smith Guidance on Audit Committees and elements of the Higgs Report. The Combined Code is subject to regular review.

The UK Combined Code works on what is known as a “Comply or Explain” basis; in other words, companies may choose not to comply with specific provisions but, in that case, will have to provide a proper public explanation of their decision.

Companies listed on AIM in the UK are not formally required to comply with the Combined Code. Some choose to do so. The QCA (Quoted Companies Alliance) published, in July 2005, the Corporate Governance Guidelines for AIM companies, which are based on the Combined Code and are voluntary. This can be ordered from the QCA Website.

Note: In July 2010 The Combined Code was replaced by the UK Corporate Governance Code.

Also See:

Category: Guide to City Jargon

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