With regards to the make-up of the Board, what should be the starting point for the board of an AIM company considering a move to the Main Market in implementing an effective corporate governance structure?
The key considerations for directors should be: (a) to invest the time as a board to actively consider what is appropriate for their particular company, (b) seek guidance from the company’s Nomad and other governance advisers, (c) seek to follow, as a minimum, the ‘Corporate Governance Code for Small and Mid-Size Quoted Companies’, published by the Quoted Companies Alliance - widely recognised as the benchmark for SME corporate governance, and (d) to monitor the effectiveness of governance systems on a continuing basis so that changes are made to adapt and improve the systems over time.
It’s worth noting too that the move to the Main Market is likely to bring more interaction with shareholder groups, media and consultants, and CFOs may want to consider strengthening their Investor Relations and Public Relations teams and support to handle the increased interest in their company.
There is no mandated size or time at which a company must move and there are larger businesses doing very well on AIM. However, we fully recognise the benefits for some companies of moving from AIM and the team at London Stock Exchange is always on hand to discuss the practicalities of making the transition to the Main Market.
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