Image of Bank of England

Inside AIM – Preparation for corporate governance changes


Posted by , on

Summary: The London Stock Exchange has published Inside AIM with guidance to address some of the common questions received from nominated advisers on the forthcoming new corporate governance arrangements.

From 28 September 2018 AIM companies must disclose on their website how they ‘comply or explain’ against a recognised corporate governance code and where they depart from this code, an explanation of the reasons for doing so.

Points to note

  • There is no prescribed list of recognised codes as the Exchange believes that companies should have a range of options to suit their specific stage of development, sector and size. However, it has referred to the UK Corporate Governable Code and the QCA Corporate Governance Code as established benchmarks.  For those AIM companies that have a dual listing in their home state, they can report using an appropriate standard in their home jurisdiction.  For example, an Australian incorporated company listed on both ASX and AIM can make disclosures using the recommendations set by the ASX Corporate Governance Council provided this disclosure is available on the website and reviewed annually.
  • The information should be reviewed annually and the date it was last reviewed should be included on the website (AIM Rule 26). The London Stock Exchange (the ‘Exchange’) expects that for most companies the annual review will take place at the same time as the company prepares its annual report and accounts.
  • The disclosure on the website should be clearly presented and easily accessible from the ‘AIM Rule 26’ landing page but the corporate governance statement can be incorporated by reference.  For example, the disclosure can be provided in a clearly delineated corporate governance section of the annual report provided this material is freely available to interested parties. If an AIM company has not yet made disclosure against a recognised code in its annual report, the corporate governance statement must be disclosed on its website by 28 September 2018.

View Inside AIM

Stay informed

Sign up to receive email alerts from our award winning Expert Insights team

Sign up now

See more insights by category

This site uses cookies to help us manage and improve the website, your browsing experience, and the material/information we send to our subscribers. For further information about cookies, including how to change your browser settings to no longer accept cookies, please view our Privacy Notice. Otherwise we will assume you are OK to continue.