High standards of corporate governance make a major contribution to the long term performance of companies. It is for that reason that I welcome the recent amendment to the AIM rules, requiring all AIM companies to provide details on their website of the 'recognised corporate governance code' that the company has decided to apply, how the company complies with that code and, where it departs from that code, the reasons for doing so.
No code is recommended and the individual company will be able to choose which one it considers to be most appropriate. In my opinion, most AIM companies will adopt the QCA code, but as they grow may move to the UK corporate governance code.
It is to be hoped that this new requirement will strengthen procedures and help AIM companies to deliver strong and effective governance. Good governance is vital not only for the company, but also for the integrity and reputation of AIM.