Our latest report on the QCA Corporate Governance Code demonstrates its widespread usage among growth companies as well as how flexibly it is being applied.
Here are the key findings:
QCA Code penetration remains considerable: 92% of AIM-quoted companies currently adopt the QCA Code, rising to 97% of AIM-quoted UK companies. On Aquis, the proportion is 73%.
The shift to the 2023 version of the QCA Code has begun: 26% of AIM-quoted QCA Code followers have moved to the new version of the Code in the last year.
AIM companies are making greater use of the QCA Code’s flexibility: 20% of followers state they do not fully apply the Code, twice the proportion of two years ago.
And it is the smallest companies that are most likely to take advantage of that flexibility: more than 30% of companies with a sub-£5m market cap explain how they depart from the QCA Code; deviation is half that rate for those with a market cap in excess of £100m.
Supported by member consultation, the QCA is proud to have developed the QCA Code over the last 12 years, building on our guidance documents for smaller quoted companies that date back to 1993.
We do not monitor the Code’s application. What we do expect is that any company seeking to apply the Code buys a copy of it from us as a contribution to our campaigning work.
Governance disclosures should not be approached as a compliance exercise. The Code is a trusted framework that can be applied flexibly to suit whatever stage of development a company is at.
