For many AIM companies this will not be a case of starting from scratch. Indeed a recent PwC study revealed that 77 per cent of the AIM’s largest 100 companies comply with some aspects of the Combined Code. Our advice on preparation has always been that it is never too early for companies to establish corporate governance policies and procedures that would be appropriate for the Main Market. Engaging with the investment community on corporate governance related decisions and maintaining open dialogue only serves to enhance investors’ and other stakeholders’ confidence as companies regardless of whether this is in preparation to move from AIM to the Main Market.
The move to the Main Market is also an opportune moment for a company to reconsider the make up of its Board and non-executive directors. The talent pool of NEDs available to Main Market companies is broader and Boards should consider whether they need to take on one or more directors specifically with FTSE250+ experience.
In the next instalment of our AIM to Main series, Marcus Stuttard, Head of UK Primary Markets at London Stock Exchange discusses what you need to consider when making the change.