The recommendations aim to increase rigour and transparency in the appointment process, to encourage meritocracy and to widen the spread of experience in UK boardrooms. They include:

• Proposals to promote meritocracy in the boardroom through an open, fair and rigorous appointments process and to widen the pool of candidates
• Proposing a new, clear description of the role of the non-executive director
• That the roles of chairman and chief executive should be separated, and that the chief executive should not go on to become chairman of the same company
• A new definition of independence that addresses relationships that would, or could, affect a director’s objectivity. At least half the board would need to meet the new test, as would members of the audit and remuneration committees and the majority of the nomination committee
• Promoting closer relationships between non-executive directors and major shareholders
• Significantly improved induction and professional development for directors
• Recommending that the performance of individual directors, and of the board as a whole, should be evaluated at least annually
• Proposals to clarify the liabilities of non-executive directors
• Recognising that some of the new Code provisions may be less relevant or take longer to achieve for smaller companies.

Derek Higgs rejected a US-style legislative approach, opting instead to build on the existing framework for UK corporate governance.

He said: “My hope is that, taken together, the recommendations of this Review will significantly raise the bar for board practice and corporate performance in the UK. “I do not presume that a one-size fits all approach to governance is appropriate. The Review is not a blue-print for box tickers, but a counsel of best practice that can be intelligently applied.”