ACC submitted comments to the UK Financial Reporting Council on revisions to the UK Corporate Governance Code and Guidance on Board Effectiveness.
WASHINGTON (March 1, 2018) — The Association of Corporate Counsel (ACC), a global legal association representing more than 43,000 in-house counsel in 85 countries, submitted comments to the United Kingdom Financial Reporting Council (FRC) on revisions to the UK Corporate Governance Code and Guidance on Board Effectiveness — urging the FRC to incorporate a recommendation on the role of the legal function in influencing corporate culture.
Legal and regulatory matters are increasingly central to the implementation of business strategies. Inclusion of the law department in the development of business decisions signals to the company's stakeholders that ethics, compliance, and other legal risk considerations are top priorities for the company. In its comments, ACC applauds the FRC's direction to boards and chief executives to consider how they are promoting corporate culture within their organizations, but further advocates that the general counsel's (GC) seat at the executive leadership table is similarly critical.
The reporting structure of the GC or chief legal officer (CLO) position is an important indicator of the influence of the law department. According to the ACC CLO 2018 Survey, only 47 percent of CLOs and GCs in the UK report directly to the chief executive officer (CEO), compared with 64 percent globally. ACC states that the FRC should encourage organizations to include the GC or CLO as part of the executive management team — reporting directly to the chief executive officer and having regular access to the board of directors.
ACC's comments on the UK Corporate Governance Code and Guidance on Board Effectiveness can be viewed here.
About ACC: The Association of Corporate Counsel (ACC) is a global legal association that promotes the common professional and business interests of in-house counsel who work for corporations, associations and other organizations through information, education, networking, and advocacy. With more than 43,000 members in 85 countries employed by over 10,000 organizations, ACC connects its members to the people and resources necessary for both personal and professional growth. By in-house counsel, for in-house counsel.® For more information, visit www.acc.com and follow ACC on Twitter: @ACCinhouse.
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