Small businesses in the UK get some long awaited guidance
Unlisted UK companies are gaining support in their understanding and development of governance practices as they recently received the first ever- corporate governance guidance and principles publication from the Institute of Directors (IoD) targeted specifically for non-listed companies.
The guidebook, which is sponsored by Deloitte, the global auditing and consulting firm, consists of 14 principles of 'good governance' and has been created to interpret and bring together various elements from similar guidance that currently only caters for listed firms.
According to the UK-based research group, the importance of upholding high standards of corporate governance among smaller businesses, especially those owned by individuals and families, is particularly high in the current environment.
Additionally, the IoD claims that 'transparency' and 'accountability' are crucial factors that owners of unlisted firms must take into consideration, otherwise they may have a limited opportunity to sell their ownership stakes.
'Appropriate corporate governance practices can contribute to the success of UK companies of all types and sizes,' says Miles Templeman, general director of IoD. 'Good governance is not only relevant for financial institutions and large listed companies,' he added.
