SMBs want own corporate governance code

29/May/2012

The UK's small and medium-sized business market wants its own corporate governance code.

Research by BDO and the Quoted Companies Alliance (QCA) found 92 per cent of small and mid-cap companies would like to see a mandatory governance code that reflects the size and complexity of their business, with governance for standard listed, AIM and PLUS-quoted companies.

Many SMBs currently follow a voluntary code, such as the QCA's Corporate Governance Guidelines for Smaller Quoted Companies.

"For such a large number of small and mid-cap quoted companies to actively call for a mandatory corporate governance code shows how confident they are in their current business stewardship standards," said Scott Knight, BDO partner.

Mr Knight said despite the economy's re-entry into technical recession, the SMB sector was "leading the charge" towards a new era in which small and mid-caps feel ready to face the challenges ahead.

Hiring intentions have also become more positive, according to the research.

More than half (55 per cent) of small and mid-cap companies expect to recruit in the year ahead, a seven per cent increase since January.