Guidance and Principles for Corporate Governance for unlisted companies

On November 22 2010 the Institute of Directors (IoD) launched its Guidance and Principles for Corporate Governance for unlisted companies. For many years larger companies listed on the Stock Exchange have had the benefit of detailed guidance often simply referred to as the Code. The new Guidance and Principles issued by the IoD set out 14 basic principles of corporate governance for small and medium companies.


Directors and owners of SMEs should consider applying the Guidance and Principles because:

1. it will make their company more attractive to external investors, banks and suppliers;
2. it will provide better risk management for the whole business and therefore protect the downside;
3. they provide vital tools to help the company become more professional.


The Guidance and Principles will help many types of companies such as:

1. where a major shareholder, probably the business founder, wishes to bring in new investors or new management;
2. where shares in a company are owned amongst family members;
3. where companies are in a growth phase; and
4. where companies are planning to go on the Plus market or AIM .


Go to www.IoD.com where the Guidance and Principles can be downloaded in full.

David Dees can be contacted at Heald Solicitors on: 01908 355405.

David is Corporate Partner at Heald Solicitors and advises boards of directors and business owners.

Filed: 25/11/2010 16:22:16