UK corporate governance.

A new Combined Code for Great Britain was issued by the Financial Reporting Council on July 23, 2003 and will apply to listed British companies for financial years ending on or after November 1, 2003. For many companies there will need to be an increase in the number of independent non-executives on the board to ensure a majority of independent non-executive directors rather than one-third being non-executives, a majority of whom have to be independent. Companies will also need to consider whether their non-executives are independent, applying the new definition of independence, namely, whether each is independent in character and judgment and whether there are any relationships or circumstances which are likely, or could appear to affect, their judgment.