View source for Review of the role and effectiveness of non-executive directors

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'''''Review of the role and effectiveness of non-executive directors''''' (or the "Higgs review") was a report chaired by [[Derek Higgs]] on [[corporate governance]] commissioned by the UK government, published on 20 January 2003. It reviewed the role and effectiveness of [[non-executive director]]s and of the audit committee, aiming at improving and strengthening the existing [[Combined Code]].<ref>{{cite web
|last        = Higgs
|first       = Derek
|url         = http://www.berr.gov.uk/files/file23012.pdf
|title       = Review of the role and effectiveness of non-executive directors
|publisher   = [[Department for Business, Enterprise and Regulatory Reform]]
|date        = 2003-01-20
|accessdate  = 28 April 2008
|url-status     = dead
|archiveurl  = https://web.archive.org/web/20080910081648/http://www.berr.gov.uk/files/file23012.pdf
|archivedate = 10 September 2008
}}</ref><!--
--><ref>{{cite web
|title       = The Higgs Review
|url         = http://www.berr.gov.uk/bbf/corp-governance/higgs-tyson/page23342.html
|publisher   = [[Department for Business, Enterprise and Regulatory Reform]]
|accessdate  = 28 April 2008
|url-status     = dead
|archiveurl  = https://web.archive.org/web/20080414205912/http://www.berr.gov.uk/bbf/corp-governance/higgs-tyson/page23342.html
|archivedate = 14 April 2008
}}</ref>
There was widespread unrest after the scandals in the US, involving [[Enron]], [[WorldCom]], and [[Tyco International|Tyco]]. The US opted for legislation under the [[Sarbanes–Oxley Act]].
Higgs strongly backed the existing non-prescriptive approach to corporate governance: "comply or explain". Yet he advocated more provisions with more stringent criteria for the board composition and evaluation of independent directors. He wanted to remove some of the discretion that the Code allowed.
Higgs viewed the earlier scandals, which led to the [[Cadbury Report]] could have been avoided had a Code been in place. The [[Robert Maxwell]] debacle{{explain|reason=Who was he and what was his debacle about?|date=August 2018}} could have been avoided in his view because many firms already refused to deal with him, and disclosure of his company's governance practices would have led to more pressure for change.
In December 2009, the Financial Reporting Council commissioned the Institute of Chartered Secretaries and Administrators to update the Higgs guidance with the assistance of a Steering Group. In July 2010, ICSA launched draft guidance ['Improving board effectiveness'] as part of this process. The Financial Reporting Council published the final guidance in March 2011, and it is available here: http://www.frc.org.uk/getattachment/c9ce2814-2806-4bca-a179-e390ecbed841/Guidance-on-Board-Effectiveness.aspx
==See also==
* [[Combined Code]]
* [[Cadbury Report]] (1992)
* [[Greenbury Report]] (1995)
* [[Hampel Report]] (1998)
* [[Turnbull Report]] (1999)
* [[Smith Report]] (2003)
==References==
{{Reflist}}
==External links==
* The Higgs report DBERR [https://web.archive.org/web/20080414205912/http://www.berr.gov.uk/bbf/corp-governance/higgs-tyson/page23342.html website] and [https://web.archive.org/web/20080910081648/http://www.berr.gov.uk/files/file23012.pdf pdf]
* [https://web.archive.org/web/20080517095620/http://www.frc.org.uk/documents/pagemanager/frc/Combined%20Code%20June%202006.pdf Full text of the combined code 2006]
* [http://webarchive.nationalarchives.gov.uk/20070119120000/http://www.fsa.gov.uk/pubs/ukla/lr_comcode2003.pdf Full text of the combined code 2003]
* The Financial Services Authority [[Listing Rules]] [http://fsahandbook.info/FSA/html/handbook/LR online] and in [http://fsahandbook.info/FSA//handbook/LR.pdf pdf format], under which there is an obligation to comply with the Combined Code, or explain why it is not complied with, under LR 9.8.6(6).
* The [[Financial Reporting Council]]'s [https://web.archive.org/web/20080422184814/http://www.frc.org.uk/index.cfm website]
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[[Category:Reports of the United Kingdom government]]
[[Category:2003 in the United Kingdom]]
[[Category:United Kingdom company law]]
[[Category:Reports on finance and business]]
[[Category:Corporate governance in the United Kingdom]]
[[Category:2003 documents]]